\u3000\u3 Shengda Resources Co.Ltd(000603) 127 Joinn Laboratories (China) Co.Ltd(603127) )
In 2022q1, the company realized operating revenue of RMB 271 million (+ 34.82%) and net profit attributable to parent company of RMB 125 million (+ 34.27%). In 2022q1, the company signed more than 1 billion new orders, with a year-on-year increase of more than 65%. The amount of orders on hand at the end of 2022q1 exceeded 3.6 billion yuan.
Key points supporting rating
The company’s performance in the first quarter of 2022 maintained stable growth. In the first quarter of 2022, the company realized an operating revenue of RMB 271 million, a year-on-year increase of 34.82%, a net profit attributable to the parent of RMB 125 million, a year-on-year increase of 34.27%, and a deduction of non attributable net profit of RMB 132 million, a year-on-year increase of 66.65%. The management expense of the company in the first quarter of 2022 was 64 million yuan, a year-on-year decrease of 4.75%, and the sales expense rate decreased by 9.8 percentage points year-on-year. In the first quarter of 2022, the newly signed orders of the company exceeded 1 billion yuan, with a year-on-year increase of more than 65%. As of the first quarter of 2022, the amount of orders in hand exceeded 3.6 billion yuan.
Team building continued to advance, and the registration of A-share restricted stock grant under the equity incentive plan was completed. On January 28, 2022, the board of directors of the company deliberated and approved the proposal on granting A-share restricted shares to incentive objects, and completed the registration on March 29, 2022. The number of restricted shares granted this time is 366300 shares, and the grant price is 83.97 yuan / share. The actual registered number is 297, which is the core technology (business) backbone of the company. In 2022, the company will continue to choose the opportunity to launch equity incentive, expand the scope of equity incentive, do a good job in the implementation of equity incentive and help the development of the company. As of December 31, 2021, the company has a professional service team of more than 2100 people. In 2022, the company will continue to increase investment in human resources, strengthen recruitment, and strive to solve the talent introduction and supplement of short board specialty.
Actively carry out business capacity-building and continuously improve service capacity. In terms of non clinical business, focusing on the needs of new hot spots, new technologies and new target key technologies of innovative drugs, the company has carried out non clinical evaluation of many Chinese original new drugs in the fields of innovative cell therapy, bispecific antibodies and multi-target antibodies, innovative ADC, gene therapy, nucleotide drugs, innovative technology route vaccines and innovative inhaled macromolecular drugs. In 2021, the company introduced professional and technical talents to form a cell assay team, and the cell assay business will become a new growth point of the company in the future. In terms of experimental model research, in 2021, the mammalian somatic cell cloning technology platform of Suzhou Qichen, a Joinn Laboratories (China) Co.Ltd(603127) subsidiary, obtained the first batch of somatic cell cloned Bama pigs and somatic cell cloned mice.
Valuation
It is expected that the net profit of the company in 2022, 2023 and 2024 will be 730 million yuan, 920 million yuan and 1.209 billion yuan respectively, and the EPS will be 1917 yuan, 2415 yuan and 3174 yuan respectively, maintaining the buy rating.
Main risks of rating
Risk of policy change; New business expansion fails to meet expectations; Market competition intensifies.
