\u3000\u3 Shengda Resources Co.Ltd(000603) 127 Joinn Laboratories (China) Co.Ltd(603127) )
Event: on the evening of April 28, the company released the report for the first quarter of 2021. In the first quarter of 2022, the company achieved a revenue of 271 million yuan, a year-on-year increase of 34.82%; The net profit attributable to the parent company was 125 million yuan, a year-on-year increase of 34.27%; The non net profit deducted was 132 million yuan, a year-on-year increase of 66.65%.
Viewpoint:
Q1 performance exceeded expectations. After excluding the unrealized income from changes in the fair value of biological assets and the impact of raised funds, the net profit attributable to shareholders of listed companies increased by 253.40% year-on-year. Q1’s revenue and performance continued to maintain rapid growth. In a single quarter, the operating revenue was 271 million yuan, a year-on-year increase of 34.82%, deducting 132 million yuan of non net profit, a year-on-year increase of 66.65%, exceeding market expectations. Excluding the unrealized income from changes in the fair value of biological assets and the impact of the above raised funds, the net profit attributable to shareholders of listed companies after deducting non recurring profits and losses increased by 253.40% year-on-year. We believe that the growth rate of the company’s revenue side is higher than that of the same period last year, showing a high industry prosperity and order execution level. The gross profit margin also maintained the same level as that of the same period last year.
The company’s new orders grew by more than 65% year-on-year, providing a solid guarantee for the high growth rate of revenue in the future. In the first quarter of this year, the company signed more than 1 billion new orders, with a year-on-year increase of more than 65%. On the one hand, the position of the company in the industry has been continuously strengthened. On the other hand, it also highlights the high prosperity of the drug safety evaluation industry. By the end of the reporting period, the amount of orders on hand of the company had exceeded 3.6 billion yuan, and it is expected to maintain a high growth rate on the revenue side in the future.
Investment suggestions:
As a high-quality enterprise in the field of drug safety assessment, we believe that the company’s performance will continue to maintain a high growth rate from 2022 to 2023. On the one hand, China’s drug safety assessment market will continue to maintain a high boom, and the company is in a leading position in the industry, which will significantly benefit from industry dividends; On the other hand, the company is expanding in the upstream and downstream of the industrial chain and internationalization, and the new growth point of performance is clear. We estimate that the operating revenue from 2022 to 2023 will be 2.143 billion yuan and 3.034 billion yuan respectively, and the net profit attributable to shareholders of listed companies will be 789 million yuan and 1.092 billion yuan respectively. The corresponding EPS from 2022 to 2023 will be 2.07 yuan / share and 2.86 yuan / share respectively, with P / E ratios of 44.27 times and 32.04 times respectively. Continue to give a “buy” rating.
Risk warning: policy risk; The production capacity is lower than expected; Biological assets falling price risk.
