\u3000\u30 Zhongyan Technology Co.Ltd(003001) 71 Tofflon Science And Technology Group Co.Ltd(300171) )
Tofflon Science And Technology Group Co.Ltd(300171) released the first quarterly report of 2022. In the first quarter, the operating revenue was 1.237 billion yuan, a year-on-year increase of 72.67%; The net profit attributable to the parent company was 211 million yuan, a year-on-year increase of 91.44%; The net profit attributable to the parent company after non deduction was 198 million yuan, with a year-on-year increase of 95.78%.
Viewpoint: the performance of the first quarter report of 2022 is better than expected, and the fluctuation of short-term gross profit margin is mainly related to “exogenous” factors. In the long run: with the increase in the proportion of DS end products and consumables with high added value, the profitability is expected to improve steadily. Pharmaceutical equipment and consumables platform enterprises with diversified layout are optimistic about breakthroughs at home and abroad.
The gross profit margin of 2022q1 is 40.28% (43.61% in the same period of last year). We infer that the fluctuation of gross profit margin is mainly related to the rise in the price of raw materials, the increase in labor costs and the high proportion of low gross profit products delivered in Q1.
In 2022q1, the net interest rate increased by 17.89% (16.98% in the same period of last year) 1PCT. If the impact of equity incentive amortization expense is excluded, the net interest rate will perform better. The sales expense ratio and management expense ratio have been steadily improved, and the R & D investment has been further increased to store energy for the R & D and listing of new products. The net cash flow from operating activities in Q1 was – 167 million (a year-on-year decrease of 170.19%), which was mainly due to the increase in the procurement and hoarding of core raw materials and the increase in employee compensation expenses.
We believe that Tofflon Science And Technology Group Co.Ltd(300171) outstanding competitive advantages are mainly reflected in complete product layout, rich customer resources and leading overseas development.
Complete products: equipment + consumables double drive. The company has completed the layout of four major consumables through “self research + M & a” and gradually released its performance. The acquisition of Qianchun biology extends to the filler business, shares in Hangzhou Sepp filtration, enters the field of filtration components, independently develops several serum-free media, and will continue to enrich product categories. Rich customers: the company has been deeply engaged in the field of pharmaceutical equipment for nearly 30 years and has accumulated rich customer resources, including many vaccine enterprises, traditional pharmaceutical enterprises and new biological pharmaceutical enterprises. Based on the trust of existing customers, it is conducive to the trial and packaging sales promotion of the company’s new products.
Leading in internationalization: the company has set up 11 subsidiaries in India, Russia, the United States, Indonesia, Vietnam, Dubai and other countries and regions. From 2015 to 2021, the overseas revenue CAGR was 29.4%. We are optimistic about the company’s firm strategy, forward-looking layout, taking advantage of the east wind of the industry, we are ready to make progress, and the future can be expected.
Profit forecast and investment suggestions: we expect the net profit attributable to the parent company from 2022 to 2024 to be 1.039 billion yuan, 1.390 billion yuan and 1.825 billion yuan, with a year-on-year increase of 25.5%, 33.8% and 31.3% respectively. The corresponding PE of the current stock price is 21x, 16x and 12x respectively. Excluding the impact of amortization of equity incentive expenses, the net profit attributable to the parent company from 2022 to 2024 will be 1.088 billion yuan, 1.417 billion yuan and 1.846 billion yuan, with a year-on-year increase of 31.5%, 30.2% and 30.2% respectively. Maintain the “buy” rating.
Risk warning: the epidemic affects the production and delivery of orders, which is less than expected; The sales promotion of new products is less than expected
