Main points of investment
Event: the company released the 2021 annual report and the first quarterly report of 2022, and the operating income in 2021 was 570 million yuan, an increase of 39.21% over the same period last year. The net profit returned to the mother was 146 million yuan, an increase of 68.04% over the same period last year, deducting 133 million yuan from non-net profit, an increase of 56.02% over the same period last year. In the first quarter of 2022, the operating income was 205 million yuan, an increase of 42.45% over the same period last year, and the net profit was 70.7226 million yuan, an increase of 61.18% over the same period last year, deducting 70.8072 million yuan from non-net profit, an increase of 63.54% over the same period last year.
The performance exceeded expectations, and CRO/CDMO led sustained and rapid growth. The company's revenue and profits maintained rapid growth, of which the profit growth rate was greater than the revenue growth rate, mainly due to the reduction of the expense end. The total expense rate (including R & D) during 2021 and 2022Q1 was 27.35% and 13.57% respectively, which decreased by 4.73% and 4.82% respectively compared with the same period last year. From a quarterly point of view, 2021Q4's revenue was 140 million yuan, up 30.40% over the same period last year; the net profit returned to its mother was 35.62 million yuan, up 72.49% from the same period last year; and 24.88 million yuan was deducted from non-net profit, an increase of 9.56% over the same period last year. The company's 2022Q1 revenue and profits reached record highs for a single quarter. We expect the rapid growth of the performance is mainly driven by the rapid development of CRO/CDMO business and the rapid growth of sales of some mature API varieties, of which CRO/CDMO business achieved operating income of 277 million yuan in 2021, an increase of 88.15% over the same period last year, accounting for 48% of the revenue.
65%, we expect to be mainly driven by the rapid growth of sales of AGN-H, LA-05 and other varieties. The capacity construction of the company's various projects is progressing smoothly, the capacity bottleneck will be gradually removed, and the new capacity is expected to drive the company's performance to maintain rapid growth.
Sub-business: the rapid development of CRO/CDMO, the steady growth of API intermediates and the smooth progress of innovative drugs. 1) with the rapid development of CRO/CDMO, the number of projects and customers has increased steadily. In 2021, there are a total of 27 ongoing projects (7 API projects, 20 advanced intermediates projects, 21 clinical projects and 6 commercial projects). 2) the growth of API intermediates is steady, and the quantity of mature varieties is just around the corner. We expect that the current rapid growth is mainly driven by the rapid growth of bicyclol, entecavir, non-busta, posaconazole, nebirol and other varieties, the gradient allocation of API intermediates is reasonable, and driven by new production capacity and varieties, we believe that the company's API intermediates business is expected to maintain steady growth. 3) the innovative drug Brozo sodium spray sodium Ⅱ clinical has completed the patients in the group, which has the potential of a blockbuster and is expected to bring new growth points in the long term.
Expense rate: the gross profit margin remains stable, the expense rate decreases gradually, and the R & D investment continues to increase. Gross profit margin: 54.79% in 2021 (+ 1.64pp, year-on-year change, the same below), of which the gross profit margins of liver diseases, antibiotics, nervous systems and gout, which account for a large proportion of income, are 70.8% (+ 1.16pp), 46.7% (- 7.19pp), 48.8% (- 1.72pp) and 24.2% (- 0.59pp), respectively, which are basically stable. We expect the fluctuation of antibacterial gross profit margin is mainly due to the fluctuation of order volume. 2022Q1 gross profit margin of 55.64% (+ 0.23%), remained stable. Expense rate: sales expense rate in 2021.
26% (+ 0.54pp), the management expense rate 13.01% (- 0.90pp), the financial expense rate 1.01% (- 4.04pp), the financial expense rate decreased by about 4pp compared with the same period last year, mainly due to the decrease in exchange gains and losses caused by changes in the exchange rate of the US dollar; the three 2022Q1 expense rates totaled 8.40% (+ 0.84%), which remained basically stable. R & D expenses: in 2021, R & D expenses are 68.82 million yuan (+ 35.56%), accounting for 12.08% of income (- 0.33pp); 2022Q1 R & D expenses are 10.6 million yuan (- 32.05%), accounting for 5.17% of income (- 5.67pp). We expect the decline in revenue share is mainly due to the rapid growth of operating income.
Profit forecast and investment advice: according to the latest announcement, we adjust our profit forecast and estimate that the company will earn 8.08,10.94 and 1.483 billion yuan in 2022-2024 (7.81,1.058 billion yuan before adjustment in 2022 and 2023), an increase of 41.85%, 35.33% and 35.56% over the same period last year. The net profit of homing was 2.19,3.13 and 445 million yuan (2.03 and 293 million yuan before adjustment in 2022 and 2023), an increase of 50.16%, 43.00% and 41.95% over the same period last year. The current share price corresponds to 2022-2024 PE times 96-67-47. Considering the rapid development of the company's CRO/CDMO, the catalysis of API intermediates released with variety and production capacity is expected to continue to release volume, generic drugs, innovative drug business layout to create a long-term new growth point, maintain the "buy" rating.
Risk prompt events: product research and development and technological innovation risk; international trade environment change risk; environmental protection and production safety risk; exchange rate fluctuation risk; risk of delayed or untimely updating of public information.