\u3000\u3 Guocheng Mining Co.Ltd(000688) 621 Beijing Sun-Novo Pharmaceutical Research Co.Ltd(688621) )
Event overview
On April 28, 2022, Beijing Sun-Novo Pharmaceutical Research Co.Ltd(688621) disclosed that the first quarterly report of 2022: the company achieved operating revenue of 148 million yuan, an increase of 54.49% year-on-year; The net profit attributable to the shareholders of the listed company was 33.402 million yuan, a year-on-year increase of 62.65%; The net profit attributable to shareholders of listed companies after deducting non recurring profits and losses was 31.177 million yuan, a year-on-year increase of 54.97%; The basic earnings per share is 0.42 yuan / share.
Event comments
2022q1 performance growth exceeded expectations, with sufficient orders and team expansion
In the first quarter of 2022, the revenue side and profit side increased rapidly: the main business revenue increased by 54.49% year-on-year, and the net profit attributable to the parent company increased by 62.65% year-on-year. Mainly due to the rapid growth of business orders, the continuous expansion of technical team and the continuous strengthening of service capacity. By the end of 2021, the company had accumulated 1.568 billion yuan of stock orders and 929 million yuan of new orders, with a year-on-year increase of 76.42%. The continuous high growth of customer demand provided sufficient guarantee for performance growth.
During the period, the expenses increased and the profitability improved
During this period, the sales expenses, administrative expenses and financial expenses increased by 51.26%, 71.16% and 594.41% year-on-year. The rapid expansion of the company’s business led to an increase in expenses. In terms of profit margin, the gross profit margin of Q1 in 2022 was 56.59%, with a year-on-year increase of 2.07 percentage points; The net interest rate was 23.55%, a year-on-year increase of 1.33 percentage points, the profit margin showed an upward trend, and the profitability was further improved.
Continuously increase R & D investment and continue to scale up the innovative drug business sector
In 2022, Q1 invested 167927 million yuan in R & D, a year-on-year increase of 73.91%. The proportion in revenue was 11.35%, an increase of 1.27 percentage points compared with Q1 in 2021, and 6 core technicians were added. The company continued to increase investment in the research and development of innovative drugs, improved new drugs and characteristic generic drugs. By the end of 2021, the company’s internal research projects had exceeded 150, including 18 innovative drugs: 8 polypeptide innovative drugs and 10 improved new drugs. In terms of innovative drugs, the company’s products under research are mainly used in the fields of analgesia, nephropathy and dialysis, tumor assistance, cardio cerebrovascular, antibacterial drugs and other indications; These products have certain technical barriers and are clinically necessary and in short supply. They have good market prospects and are easier to recommend to customers, which is conducive to driving the growth of the company’s performance.
Investment advice
We maintain the performance forecast. Taking into account the rich experience accumulated by the company in the field of generic drugs, we have formed the advantages of “pharmaceutical research + clinical trial + biological analysis” comprehensive drug R & D services, and gradually increase the investment in the innovative drug cro sector. With the layout of the company in the innovative drug platform, it is expected that the service orders related to innovative drugs will increase significantly in the future and have strong growth potential. It is estimated that the company’s revenue from 2022 to 2024 will be 688 / 933 / 1234 million yuan respectively; The year-on-year growth rate was 39.4% / 35.6% / 32.3%; The net profit attributable to the parent company is 153 / 215 / 295 million yuan respectively; The year-on-year growth rate of net profit was 44.8% / 40.7% / 36.9%; The corresponding EPS from 2022 to 2024 is 1.91/2.69/3.68 yuan / share; Corresponding PE is 49x / 35 / 25X. We maintain a “buy” rating.
Risk tips
The epidemic situation has intensified; Industry competition intensifies; Order delivery is not as expected; The research and development of innovative drugs has not progressed as expected.
