\u3000\u30 Guangdong Tengen Industrial Group Co.Ltd(003003) 63 Porton Pharma Solutions Ltd(300363) )
Event overview
In Q1 2022, the operating revenue was 1.443 billion yuan, a year-on-year increase of 166%, the net profit attributable to the parent was 382 million yuan, a year-on-year increase of 334%, and the net profit deducted from non attributable to the parent was 381 million yuan, a year-on-year increase of 406%.
The troika went hand in hand, and its performance reached a record high in a single quarter
1) cdmo of API: the revenue was 1.433 billion yuan, with a year-on-year increase of 173%. We believe that the high growth of cdmo of API is mainly driven by the delivery of large orders, which is expected to account for about 63%. This year, the workshop of Yuyang pharmaceutical has been gradually transformed and put into operation. At the same time, the new workshop of Changshou and Yichun base is expected to be put into operation in 2023, with an additional 440 + m3 capacity. The company's new capacity planning basically matches the order demand.
2) preparation cdmo: the operating revenue was 1.57 million yuan, a year-on-year increase of 969%. The number of signed single customers was 22, an increase of 13 over the same period last year; The number of products with signed orders was 30, an increase of 10 over the same period last year. It is expected that the first phase of the preparation production base will be put into operation in the fourth quarter of this year, and the cdmo capacity circle of the preparation will be further expanded at that time.
Over the same period last year, the number of cdmo customers has increased by rmb9.53 million, representing a year-on-year increase of rmb9.53 million; The number of products with signed orders was 26, an increase of 17 over the same period last year. At present, the laboratory on the fourth floor of Suzhou has been put into use, further improving the company's ability in gene therapy process development, analysis and testing.
High gross profit and large order delivery have significantly improved the company's profit margin
Excluding the losses of emerging businesses and joint-stock companies, the actual net profit attributable to the parent company was 416 million yuan, with a year-on-year increase of 290%, and the profit level was better. In Q1 2022, the gross profit margin was 48.94%, with a year-on-year increase of 8.55pct, and the net profit margin was 24.83%, with a year-on-year increase of 8.68pct. The improvement of gross profit margin and net profit margin was mainly due to: 1) the improvement of capacity utilization and operation efficiency of the company; 2) The optimization of product structure and the increase of high value-added projects, such as heavy orders with high gross profit.
Investment suggestion: it is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 1.42 billion yuan, 1.58 billion yuan and 2.05 billion yuan respectively, corresponding to 28 times, 25 times and 20 times of the current share price PE respectively, maintaining the "recommended" rating.
Risk warning: the risk of performance falling short of expectations, new business investment risk and fixed asset investment risk.
