\u3000\u3 Guocheng Mining Co.Ltd(000688) 026 Guangzhou Jet Bio-Filtration Co.Ltd(688026) )
Key investment points
Event: on April 29, 2022, the company released the annual report of 2021 and the first quarterly report of 2022. In 2021, the company realized an operating revenue of 856 million yuan, a year-on-year increase of 69.80%, a net profit attributable to the parent company of 171 million yuan, a year-on-year increase of 43.38%, and a deduction of non net profit of 173 million yuan, a year-on-year increase of 57.89%. In 2022q1, the operating revenue was 190 million yuan, a year-on-year increase of 9.42%, the net profit attributable to the parent company was 41.02 million yuan, a year-on-year decrease of 14.63%, and the non net profit deducted was 39.57 million yuan, a year-on-year decrease of 12.23%.
The performance in the past 21 years has been brilliant, and the steady growth rate has been maintained under the high base of 22q1. In 2021, the company's performance continued to grow rapidly, mainly due to the rapid recovery of the demand for conventional consumables after the epidemic. In 21 years, the revenue of consumables products was 844 million yuan, a year-on-year increase of 177.63%, and the revenue of protective products was 2.8068 million yuan, a year-on-year decrease of 98.55%. In the single quarter of 2021q4, the company realized an operating revenue of 223 million yuan, with a year-on-year increase of 76.84%. The net profit attributable to the parent company was 20.32 million yuan and the non net profit deducted was 16.64 million yuan, both of which turned losses into profits. The rapid growth of Q4 performance was mainly due to the high-speed volume of the company's conventional products after the epidemic. The slowdown in revenue growth in 22q1 is mainly due to the high base caused by the strong demand for products related to the 21q1 epidemic. At the same time, it is also disturbed by the epidemic since February 22. The decline in profits is mainly affected by the amortization of equity incentives and the increase in R & D investment.
The adjustment of product structure leads to the decline of profit margin, which is expected to remain stable in the future. In 2021, the company's sales expense ratio was 2.85%, down 1.56pp from the same period last year, mainly due to the dilution of expenses caused by the expansion of revenue scale; The rate of administrative expenses was 4.13%, an increase of 1.19pp over the same period last year, mainly due to the increase of share based payment expenses. The rate of R & D expenses was 5.12%, an increase of 0.38pp year-on-year, and the rate of financial expenses was 0.71%, an increase of 0.78pp year-on-year; In 2021, the demand for protective products with high gross profit decreased, affecting the overall gross profit margin. In 21 years, the company's gross profit margin was 41.91%, a year-on-year decrease of 4.40pp, and the company's net profit margin was 20.00%, a year-on-year decrease of 3.68pp.
The growth rate of cell culture consumables reached 124%, and liquid treatment products achieved high explosion. (1) In terms of conventional products, in 2021, the company's income from biological culture products was 153 million yuan, with a rapid growth of 124.23%, and the income from liquid treatment products was 664 million yuan, with a year-on-year increase of 198.99%. The rapid growth of conventional products is mainly due to the rapid increase of procurement demand after the resumption of production in Colleges and universities and enterprises. On the other hand, products such as suction heads that can be used for nucleic acid detection have also contributed to certain achievements. With the gradual recovery of covid-19 epidemic in China, the company is expected to accelerate its access to more downstream customer supply systems and continuously improve its market share. (2) In terms of covid-19 products, the company's protective products achieved a revenue of 2.8068 million yuan in 2021, a year-on-year decrease of 98.55%, mainly due to the natural decline in the demand for masks, protective clothing and other products after the epidemic eased in China.? The growth rate of R & D investment exceeds 83%, and it is expected to quickly open the enterprise market with a variety of high-end products in the future. In 2021, the company's R & D expenses were 43.84 million yuan, a year-on-year increase of 83.46%, and the scale of R & D team was 150, a year-on-year increase of 74%. The company attaches great importance to product innovation and R & D and actively arranges the R & D and industrialization of new products in the fields of cell therapy, biomedicine, infectious diseases and vaccines. Core products such as IVF special cell culture dishes and clinical cell therapy special cell culture equipment have entered the stage of product verification. In the future, it is expected to meet the needs of more enterprise customers with rich and comprehensive customized products and inject power into the rapid growth of the company's performance.
Profit forecast and investment suggestions: according to the data of the annual report and the first quarterly report, and considering the uncertainty of the progress of covid-19 epidemic in China, we adjusted the profit forecast. It is estimated that the company will achieve operating revenue of 1.043 billion, 1.387 billion and 1.815 billion yuan from 2022 to 2024, with a year-on-year increase of 22%, 33% and 31% (1.151 billion and 1.525 billion yuan in the previous 22-23 years), and realize net profit attributable to parent company of 215 million, 307 million and 399 million yuan, with a year-on-year increase of 26%, 43% and 30%, (231 million yuan and 313 million yuan in 22-23 years before adjustment), the corresponding EPS is 215, 307 and 399. At present, the company's share price corresponds to 23 times of PE in 2022. Considering that the company is the leader of China's scientific research consumables industry, has significant competitive advantage, has rich current order reserves, and is expected to maintain a high growth trend in the future, we maintain the "buy" rating.
Risk warning events: the risk of new product research and development, the risk of intensified market competition, and the risk of delayed information or untimely update of the public data used in the research report.
