\u3000\u3 Guocheng Mining Co.Ltd(000688) 166 Brightgene Bio-Medical Technology Co.Ltd(688166) )
Core view
The performance is in line with expectations, and the R & D investment continues to increase. The company released the first quarter report of 2022, with a revenue of 248 million yuan (year-on-year + 31.53%), a net profit attributable to the parent company of 61 million yuan (year-on-year + 25.00%), and a net profit attributable to the parent company of 60 million yuan (year-on-year + 26.83%) after deduction. The performance continued to grow, basically in line with our expectations. 22q1 company increased R & D investment. In order to realize the evaluation of multiple APIs and the registration of preparations, the R & D cost reached 42.74 million yuan (year-on-year + 93.19%). Overall, the profitability of the company has improved, with a gross profit margin of 63.58% and a net profit margin of 23.27%, both significantly higher than that of the previous quarter.
Characteristic APIs contributed to the main performance, and the sales of preparations increased rapidly. The company's API and intermediate products have high technical barriers and high added value. They are the main source of revenue. The revenue of API products of 21q1 company is 208 million yuan, accounting for 83.66% of the total revenue. The net income of antifungal drugs such as phenanthrene increased by 33.83% year-on-year, representing a year-on-year increase of 127.83% in the net income of antifungal drugs. At the same time, the company's preparation sector has grown rapidly. The company has realized the preparation integration of characteristic APIs, and the preparation product revenue is 15.67 million yuan, with a year-on-year increase of 70.26%. With the continuous volume of the company's existing preparations such as oseltamivir phosphate and the listing of new preparations entecavir tablets and argatroban injection registered in Q1, the preparation sales are expected to bring more increment to the company.
Capacity expansion is imminent, and the future of R & D can be expected. The capacity utilization rate of characteristic APIs of the company's main products is very high, and the expansion of production is expected to bring new growth opportunities to the company. At present, Taixing API and preparation production base (phase I) is about to apply for trial production license and completion acceptance, with a design capacity of 3450kg. The main products include fenjing, entecavir and oseltamivir; In addition, Borui (Shandong) API phase I project, Suzhou inhalant and other chemical preparation production base and biomedical R & D center project and Borui Indonesia project have been continuously promoted. In addition, the company's R & D efforts continue to increase, independently develop respiratory preparations and iron pipelines, and also have a layout in innovative drugs. With the expansion of production capacity and the listing of new products, the long-term development of the company is worth looking forward to.
Profit forecast and investment suggestions
The company's performance is growing rapidly. We maintain the prediction that the company's EPS will be 0.81/1.13 yuan in 20222023 and 1.56 yuan in 24 years. According to PE, a comparable company with characteristic API as its main business, it is predicted that the reasonable valuation level of the company in 22 years will be 36 times PE, and the corresponding target price will be 29.16 yuan, maintaining the "buy" rating.
Risk tips
The R & D of new varieties is less than expected, the sales of preparation varieties is less than expected, the ramp up of production capacity is less than expected, and the preparation varieties are included in the centralized purchase
