Event description
South Model Biology released its 2021 annual report. During the reporting period, the company achieved revenue of 275 million yuan, an increase of 40.3% over the same period last year, and a net profit of 60.86 million yuan, an increase of 36.6% over the same period last year. The net profit after deducting non-return was 52.48 million yuan, an increase of 60.4% over the same period last year, corresponding to an EPS of 1.04 yuan. In the first quarter of 2022, the company achieved revenue of 72.71 million yuan, an increase of 33.9% over the same period last year, and a net profit of 13.92 million yuan, an increase of 17.6% over the same period last year. The net profit of non-return was 9.01 million yuan, down 16.3% from the same period last year.
Event comment
Multiple factors drive the steady growth of the company's revenue. In 2021, the company's revenue continued to increase steadily due to two main factors: 1) with the gradual expansion of the southern model standardized model line base, the core competitiveness was continuously enhanced, and the customer recognition of the company was also gradually increased. during the reporting period, the income of standardized models was 94.91 million yuan, up 77.6% from the same period last year, 74.85 million yuan from model breeding business, up 31.7% from the same period last year, and 38.11 million yuan from customized models, down 10.3% from the same period last year. 2) the downstream CRO business is gradually infiltrated, and the integrated service model is widely recognized. Based on its own mouse model, the company further developed a pharmacology and pharmacodynamics service platform to carry out CRO business such as drug screening. During the reporting period, the revenue of pharmacodynamic evaluation and phenotypic analysis services was 38.15 million yuan, an increase of 111.1% over the same period last year.
Scientific research customers, industrial customers and overseas markets are in full bloom. In terms of customer expansion, the company has made considerable progress in the past year, and the number of orders has increased rapidly. In 2021, the company signed 309 million yuan of new orders, with a growth rate of 38.87%. Specifically: 1) Scientific research client: the company serves more than 600 scientific research institutions, such as scientific research institutes, institutions of higher learning, general hospitals and other scientific research institutions, and the income of scientific research customers accounts for 60.1%. Strong stickiness 2) Industrial customers: cooperate with pharmaceutical companies such as CRO, BeiGene, Ltd., etc., and account for 39.9% of industrial customer income. 3) overseas markets are increasingly opened up:
The company's mouse model is exported to the United States, South Korea, Singapore and other overseas countries, and the revenue of related models and technical services is 19.43 million yuan, an increase of 80.7% over the same period last year, and overseas revenue accounts for 7.1% of the total revenue.
Production capacity is gradually expanding, the reserve force is sufficient, and the 22Q1 epidemic brings short-term performance fluctuations. During the reporting period, the company actively expanded its production scale, with only four production and R & D bases in Shanghai (Banxia Road, Jinke Road, Harley Road and Jinshan Base) equipped with more than 100000 cages. specifically look at the construction of a single large capacity: 1) Jinshan has a production capacity of about 50,000 cages, which has been gradually put into operation to provide facilities for the company's production and operation. 2) the production base of Zhongshan in Guangdong will be put into operation at the end of March 2022, and the production capacity will be gradually released, and the company's capacity expansion will be organically coordinated with operation to contribute to the continuous expansion of the business.
In the first quarter of 2022, the epidemic in Shanghai had a short-term impact on the company's performance, and we believe that as the epidemic is gradually brought under control, the company's annual revenue is expected to return to the track of rapid growth.
It is estimated that the company's operating income from 2022 to 2024 will be 371 million yuan, 506 million yuan and 694 million yuan, an increase of 34.7%, 36.4% and 37.2% over the same period last year. The net profit of the company will be 83 million yuan, 117 million yuan and 164 million yuan, an increase of 36.5%, 40.7% and 40.5% over the same period last year. The current stock price corresponds to 53 times, 38 times and 27 times of PE, respectively, maintaining the "buy" rating.
Risk hint
1. COVID-19 's epidemic situation has a negative impact on the company's operation.
2. the competition in the industry has intensified.
3. Risk of failure in new product research and development
4. The growth rate of the industry has slowed down, and the performance growth has fallen short of expectations.