\u3000\u3 Guocheng Mining Co.Ltd(000688) 356 Jenkem Technology Co.Ltd(688356) )
Event: the company released the first quarterly report of 2022, realizing an operating revenue of 101 million yuan, a year-on-year increase of + 44.23%; The net profit attributable to the parent company was 52 million yuan, a year-on-year increase of + 45.41%; Deducting the net profit not attributable to the parent company was 43 million yuan, a year-on-year increase of + 23.08%; Net operating cash flow was 45 million yuan, a year-on-year increase of + 626.35%; EPS0. 87 yuan. The performance is in line with market expectations.
Comments:
The growth rate of revenue maintained a high level, and the overseas growth rate was affected by covid-19 epidemic: the core business operation of 2022q1 company was stable, which promoted the continuous and high growth of performance. Among them, the product sales revenue was 90 million yuan, a year-on-year increase of + 41.63%; The income from technical services was 11 million yuan, a year-on-year increase of + 71.64%. Product sales revenue can be divided into:
The sales volume of downstream customers increased by 9.3 billion yuan year-on-year, mainly due to the continuous increase of domestic sales volume of downstream products by + 9.9 billion yuan;
The export revenue was 62 million yuan, a year-on-year increase of + 25.90%, which was mainly due to the increase of orders and delivery quantity of foreign medical device customers and the order delivery of drug customers. The main reason why the growth rate was lower than the overall revenue growth was that the covid-19 epidemic prolonged the overseas delivery cycle.
The amount of non recurring profit and loss of 2022q1 company is 09 million yuan, mainly from the government subsidy of 06 million yuan and the profit and loss from changes in fair value arising from holding trading financial assets, derivative financial assets, trading financial liabilities and derivative financial liabilities of 05 million yuan. The slow growth of net profit after deduction from non parent company is mainly caused by equity incentive expenses (the amount of share based payment included in 2022q1 is 8.9319 million yuan) and the growth of R & D investment.
Continue to increase R & D investment and promote the clinical progress of self-developed products: the R & D cost of 2022q1 company was 19 million yuan, a year-on-year increase of + 213.46%, and the R & D cost rate was 18.97%, a year-on-year increase of + 10.24pp. The company continues to increase the promotion of independent R & D projects polyethylene glycol irinotecan, jk-2122h and jk-1119i, actively layout other R & D pipelines, and continue to invest in R & D talents, materials and equipment.
Profit forecast, valuation and rating: the company’s existing business has excellent competition pattern and deep technical barriers, and the drug and device projects with R & D layout have rich application space. Considering that R & D expenses will continue to increase in the future, the forecast of net profit attributable to parent company from 2022 to 2023 will be lowered to 239 / 312 million yuan respectively (13% / 13% lower than the previous time), the forecast of net profit attributable to parent company in 2024 will be increased to 414 million yuan, the corresponding EPS will be 3.98/5.21/6.90 yuan respectively, and the current price corresponding PE will be 39 / 30 / 22 times respectively, maintaining the “buy” rating.
Risk warning: risk of failure in research and development of innovative products; US international trade protection risk; Core technology iteration risk. main points
