\u3000\u30 Zhongyan Technology Co.Ltd(003001) 71 Tofflon Science And Technology Group Co.Ltd(300171) )
Event: the company released its quarterly report for the first quarter of 2022, realizing an operating revenue of 1.237 billion yuan (+ 72.67%), a net profit attributable to shareholders of the listed company of 211 million yuan (+ 91.44%), and a net profit attributable to shareholders of the listed company of 198 million yuan (+ 95.78%) after deduction.
All kinds of products maintained rapid growth, and capacity expansion continued to advance. The company’s revenue increased significantly in the first quarter, mainly due to the significant increase in the revenue of various products such as injection single machine and system, bioengineering single machine and system, medical equipment and consumables, purification equipment and engineering, API single machine and system, inspection and packaging single machine and system, solid preparation single machine and system, after-sales service and accessories by tapping the potential and improving the delivery capacity. The R & D expense rate increased by 1.30 percentage points year-on-year, mainly due to: (1) the number of R & D personnel and R & D investment of the company continued to increase; (2) The number of subsidiaries in the consolidation scope increased year-on-year; (3) The amortization expense of equity incentive for R & D personnel increased. By the end of Q1 2022. The amount of construction in progress of the company was 229 million yuan, an increase of 22% month on month; The capital paid for the purchase and construction of fixed assets, intangible assets and other long-term assets was 92.72 million yuan, with a significant year-on-year increase, and the company’s capacity expansion is continuing.
The amount of contract liabilities continues to increase, and the prosperity of the industry is expected to remain at a good level. By the end of the first quarter of 2022, the company’s contractual liabilities amounted to 3.922 billion yuan, a year-on-year increase of 67.78% and a month on month increase of about 5%. The company’s contractual liabilities consist of prepayment for newly signed orders and payment for goods. Under the condition of normal delivery in the first quarter, we expect the amount of newly signed orders to still increase year-on-year. At the same time, considering that some of the new orders in the same period of 2021 are related to covid-19 vaccine, the peak of covid-19 vaccine production expansion has passed, and it is expected that the proportion of newly signed orders related to covid-19 vaccine in the same period of 2022 will be relatively low, Therefore, we believe that the amount of newly signed orders for non covid-19 vaccine equipment of the company continues to grow, and the prosperity of the industry remains at a good level.
Profit forecast and Valuation: the company expects its performance to be more growth rather than cyclical through measures such as the layout of biomedical equipment with higher prosperity, the provision of “equipment + consumables” integrated solution and international layout. We estimate that the company’s revenue from 2022 to 2024 will be 5.611 billion yuan, 6.900 billion yuan and 8.105 billion yuan respectively, with a year-on-year growth rate of 33.8%, 23.0% and 17.5%; The net profit attributable to the parent company was RMB 1111 million, RMB 1395 million and RMB 1694 million respectively, with a year-on-year growth rate of 34.2%, 25.5% and 21.4%. Based on the closing price on April 29, the corresponding PE was 19.8, 15.7 and 13.0 times respectively, maintaining the “buy” rating.
Risk tip: the prosperity of pharmaceutical equipment industry is declining; Overseas market development progress is lower than expected.
