\u3000\u3 Shengda Resources Co.Ltd(000603) 127 Joinn Laboratories (China) Co.Ltd(603127) )
Event overview
(1) the company announced the first quarterly report of 2022: the operating revenue was RMB 271 million, a year-on-year increase of 34.82%, the net profit attributable to the parent was RMB 125 million, a year-on-year increase of 34.27%, and the deduction of non net profit was RMB 132 million, a year-on-year increase of 66.65%.
(2) it plans to acquire two upstream experimental model enterprises: it plans to acquire 100% equity of Yunnan Yingmao biology for 829531 million yuan and Guangxi Weimei biology for 9746575 million yuan.
(3) recommend the adoption of the share incentive plan (H shares): the board of Directors approves the share incentive plan and recommends the adoption of the share incentive plan (H shares). After it is subsequently approved by the general meeting of shareholders, it will purchase Joinn Laboratories (China) Co.Ltd(603127) H shares of no more than 600 million yuan from H shares through the trust plan for equity incentive to qualified employees of the company.
Analysis and judgment:
The performance exceeded market expectations, and the year-on-year growth rate of newly signed orders exceeded 65%
The company's 22q1 operating revenue achieved an operating revenue of RMB 271 million, with a year-on-year increase of 34.82%. We judge that benefiting from China's high vision and the rapid growth of new signed orders in recent years, China's business will continue to show a trend of rapid growth. The net profit attributable to the parent company was 125 million yuan, with a year-on-year growth rate of 34.27%. After deducting non recurring profits and losses ( Changchun Bcht Biotechnology Co(688276) fair value change loss -14.472 million yuan and government subsidy 25800 yuan), changes in the fair value of biological assets (unrealized part income was 34.494 million yuan), interest income from raised funds (35.983 million yuan) and exchange gain and loss of raised funds (- 2.774 million yuan), after deducting the impact of the above items and considering the impact of income tax, The profit side increased by 253.40% year-on-year, and the performance growth exceeded market expectations. The newly signed orders of the company in 22q1 exceeded 1 billion yuan, with a year-on-year increase of more than 65%, and the scale of orders on hand in 22q1 exceeded 3.6 billion yuan, matching the contract liabilities of 1.255 billion yuan, continuing the trend of rapid growth of newly signed orders in 2021. Considering the high-speed growth of the company's orders and inventory data (866 million yuan at the end of 22q1, a year-on-year increase of 66.62%), we judge that it is expected to continue to achieve high-speed growth in 22 years.
It plans to strategically acquire upstream experimental model enterprises and enhance the service ability of safety assessment business
On the basis of continuously operating its own monkey farm and raising investment projects and accelerating the construction of Guangxi Wuzhou monkey farm, the company plans to acquire Yunnan Yingmao biology and Guangxi Weimei biology with RMB 830 million and RMB 975 million, including experimental model assets (including inventory and productive biological assets) of RMB 699 million and RMB 734 million respectively. We judge that the company will significantly increase the company's safety assessment test In particular, the service capacity of biological drug safety evaluation test has consolidated the company's competitive position in the safety evaluation industry.
It is suggested to adopt the share incentive plan (H-share) and carry out diversified equity incentive methods
After the A-share IPO, the company continued to carry out equity incentive plan for core employees for four consecutive years from 2018 to 2021. This time, the company proposes to adopt the share incentive plan (H-share), with the scale of equity incentive not exceeding 600 million yuan and more diversified incentive methods, deeply bind and attract core technical backbone, which is conducive to the medium and long-term benign development of the company's business and ensure the certainty of future growth.
Investment advice
As the largest leader of drug safety evaluation in China, the company will deeply cultivate China's safety evaluation market through regional multi-point layout in the future, and realize the coordinated development of business outside China with the help of American biomere platform. We judge that in the next 3-5 years, the company will benefit from the prosperity of innovative drug research and development in China and the expansion of market space brought by internationalization to maintain rapid growth. Without considering the two experimental animal models to be acquired, the early-stage profit forecast is slightly adjusted, that is, the revenue in 22-24 years is adjusted from RMB 2.104/30.16/4.152 billion to RMB 2.162/30.46/4.021 billion, and the EPS is adjusted from RMB 2.00/2.69/3.55 to RMB 2.04/2.71/3.45, corresponding to the closing price of RMB 91.62/share on April 28, 2022, and the PE is 44.96/33.83/26.58 times respectively, maintaining the "buy" rating.
Risk tips
Risk of loss of core technical backbone and management; The risk of increased competition; There is a risk of failure in capacity expansion, internationalization strategy and business expansion; Epidemic situation of novel coronavirus; The proposed acquisition of the two companies has not been completed and there is uncertainty.
