Event: the company publishes its 2021 annual report. For the whole of 2021, the company achieved operating income of 275 million yuan, an increase of 40.31% over the same period last year, a net profit of 61 million yuan, an increase of 36.59% over the same period last year, and a non-return net profit of 52 million yuan, an increase of 60.36%. The company releases its quarterly report for 2022. In the first quarter of 2022, the company achieved operating income of 73 million yuan, an increase of 33.88% over the same period last year, a net profit of 14 million yuan, an increase of 17.64% over the same period last year, and a non-return net profit of 9 million yuan, a decrease of 16.30% over the same period last year.
Comments: the company's revenue maintained high growth, and the two core businesses of standardized model, phenotypic analysis and pharmacological efficacy evaluation grew rapidly. the increase in gross profit margin gradually reflects the scale effect; the net profit deducted from non-return in the first quarter of 2022 is mainly affected by the epidemic and the increase in cost amortization, which can be regarded as a short-term factor in the off-season of business; with the obvious increase in test sites and the announcement of equity incentive plan, future performance support can be expected.
Profit forecast and valuation: the company focuses on CRO services such as research and development, sales and related pharmacodynamic phenotypes of genetically modified animal models. At present, the customer resources are rich, and the sales model is mature, forming a good market reputation. It is expected that the company's business is expected to achieve rapid growth. Taking into account the potential impact of the epidemic, we adjust the profit forecast. The company's EPS is expected to be 1.13,1.56 and 2.16 yuan in 2022-2024. Corresponding to April 29, 2022, the PE were 45.2X, 32.9X and 23.7X respectively, maintaining the "prudent overweight" rating.
Risk tips: large order business operation and schedule is not as expected, epidemic impact, technology iteration risk, etc.