\u3000\u3 Guocheng Mining Co.Ltd(000688) 105 Nanjing Vazyme Biotech Co.Ltd(688105) )
Events
On April 21, the company released the annual report of 2021 and the first quarter report of 2022. In 2021, the company realized an operating revenue of 1.869 billion yuan, a year-on-year increase of 19.44%, and a net profit attributable to the parent company of 678 million yuan, a year-on-year decrease of 17.46%; The net profit deducted from non parent company was 644 million yuan, a year-on-year decrease of 20.90%. In the first quarter of 2022, it achieved 975 million yuan, a year-on-year increase of 80.07%, and the net profit attributable to the parent company was 431 million yuan, a year-on-year increase of 28.18%; The net profit deducted from non parent company was 413 million yuan, with a year-on-year increase of 25.79%.
Comments
The conventional business grew in a restorative manner, and the sales scale of covid-19 related businesses remained stable
In the conventional business sector, the company achieved a revenue of 719 million yuan in 2021, with a year-on-year increase of 91%, mainly due to the control of the epidemic, which made the conventional business achieve recovery growth. Covid-19 related businesses (including diagnostic raw materials and terminal detection reagents) achieved a revenue of 1.149 billion yuan, a year-on-year decrease of about 3.25%. Among them, ① life science business: in 2021, the company provided about 720 million people with covid-19 nucleic acid detection reagent raw materials, realizing an operating revenue of 806 million yuan, a year-on-year increase of 21%. The company is one of the major suppliers of covid-19 nucleic acid detection reagent raw materials in China, with a stable market share. ② In vitro diagnosis business: the company provided about 27.6 million copies of covid-19 antigen detection reagent and about 18.9 million copies of covid-19 antibody detection reagent. The in vitro diagnosis business realized a revenue of 344 million yuan in 2021, a year-on-year decrease of 34%. This is mainly because covid-19 antibody detection kit is no longer used on a large scale in China. ③ Biomedical sector: the company achieved a sales revenue of 97 million yuan in 2021.
Continue to focus on research and development, new products are approved and registered, and the market is gradually expanded
The company focused on R & D investment. In 2021, the R & D cost was 230million yuan, an increase of 83.47% year on year. In the first quarter of 2022, the R & D cost was 711573 million yuan, an increase of 86.32% year on year. On March 11, 2022, the company obtained the registration certificate of class III medical devices for the novel coronavirus (2019 ncov) antigen detection kit (colloidal gold method), and completed the changes to increase the expected use, sample type and revised instructions, further expanding the market.
Multi pronged sales management laid the foundation for rapid business growth
In terms of expenses, the company continued to explore market and optimize channels in 2021, including 320 million yuan of sales expenses, a year-on-year increase of 70.18%, 180 million yuan of management expenses, a year-on-year increase of 95.94%, and 899183 million yuan of Q1 sales expenses in 2022, a year-on-year increase of 88.09%; The management fee was 490787 million yuan, a year-on-year increase of 106.51%.
Profit forecast and investment rating: we believe that the company's sales of antigen kits and other products are better than expected, and adjust the company's net profit. It is estimated that the company's operating revenue from 2022 to 2024 will be 2.495 billion yuan, 2.667 billion yuan and 2.886 billion yuan respectively (the value before 2022 / 2023 is 2.440/2.668 billion yuan), and the net profit attributable to the parent company will be 1.013 billion yuan, 1.074 billion yuan and 1.220 billion yuan respectively (the value before 2022 / 2023 is 880978 million yuan), maintaining the "buy" rating.
Risk tips: ① covid-19 epidemic situation uncertainty; ② Risk of decline in sales of covid-19 antibody detection kit; ③ Market competition intensifies risks; ④ New product R & D and promotion are less than expected risks.
