\u3000\u3 Guocheng Mining Co.Ltd(000688) 356 Jenkem Technology Co.Ltd(688356) )
Event: the company released the first quarterly report of 2022. In Q1, the revenue was 101 million yuan (+ 44.23%), the net profit attributable to the parent company was 52 million yuan (+ 45.41%), and the net profit attributable to the parent company after deduction was 43 million yuan (+ 23.08%). The overall performance is in line with expectations.
China's revenue maintains rapid growth and looks forward to the release of Panjin's production capacity. In terms of splitting, the sales revenue of Q1 products is 90 million yuan (+ 41.63%), including 29 million yuan (+ 93.80%) for Chinese products and 62 million yuan (+ 25.90%) for foreign products. It is expected that the company's key Chinese customers such as Kinsey, Tebao and Hengrui will still maintain rapid growth in the purchase of PEG due to the large volume of terminal products, while foreign countries will still achieve stable growth under the condition of high base in the same period last year. Q1 mainly comes from the technology royalty revenue of Xiamen Amoytop Biotech Co.Ltd(688278) pegbin's sales share of RMB 11 million (+ 71.64%). The company has abundant orders in hand. At present, the capacity utilization rate in Tianjin continues to remain high. We look forward to the completion of orders after the new capacity in Panjin is put into operation.
R & D expenses, equity incentive expenses and other expenses affect profitability. The company's Q1 gross profit margin was 86.37% (+ 1.36pct), which remained relatively stable. On the expense side, the total expense rate during the first quarter was 35.29%, with a year-on-year increase of 13.28 PCT, of which the sales / management / R & D / financial expense rate changed by 3.92 / - 4.61/10.24/3.73 PCT respectively year-on-year. It is expected that the increase in the sales and R & D expense rate is mainly due to the share based payment expenses of equity incentive (RMB 8.9313 million confirmed in Q1) and the R & D investment of PEG irinotecan. The net interest rate attributable to the parent company after deducting non profits in Q1 was 42.84%, a year-on-year decrease of 7.36pct.
The application scenarios of PEG are constantly enriched, and the medium and long-term performance is still driven by sustained and rapid growth.
The company's revenue growth in several quarters has been excellent. In addition to the contributions of Chinese commercial customers Kinsey and Hengrui, it comes more from the activity of overseas orders, indicating that overseas peg application scenarios are constantly enriched. The core competitiveness of the company's overseas expansion is mainly reflected in the understanding and technical reserves of new peg technologies and applications, based on the accumulation and deep understanding of PEG technology. Compared with its competitors, the company's R & D direction is diverse and cutting-edge. On the one hand, it can meet a variety of needs of overseas innovation and R & D. on the other hand, the company can provide customers with unique innovation services based on excellent peg technology. The benign interaction with downstream customers is conducive to the company to maintain its advantages over its competitors, optimize production capacity application and maintain profitability.
Maintain the "buy" rating. In the long run, the company is a leading enterprise in the global peg derivative industry, mastering the core technology of the whole industry chain of derivative production, and has obvious advantages in product quality and customer resources. It is expected to share the expansion bonus of PEG modification application market. It is estimated that the net profit attributable to the parent company in 22-24 years will be RMB 257 / 356 / 500 million, corresponding to the current PE of 38 / 27 / 19 times, maintaining the "buy" rating.
Risk warning. The quantity of product orders is less than expected; The progress of customer cooperation is less than expected; New product development is not as expected; Competitive pressure is greater than expected.
