Incident: The company released its 2022 semi-annual report, which slightly exceeded market expectations. In the first half of 2022, the company achieved revenue of 173 million yuan, an increase of 26.98% over the previous year; the net profit of the mother was 21.2828 million yuan, a decrease of 14.63% over the previous year, after deducting the net profit of the non-return mother of 18.485 million yuan, a decrease of 23.36% over the previous year. In the second quarter, the company achieved revenue of 124 million yuan, an increase of 74.65% over the previous year; the net profit of the mother was 236.14 million yuan, an increase of 176.33% over the previous year. After deducting the net profit of the non-return mother was 22.414,800 yuan, an increase of 179.28% over the previous year.
Comment:
New products began to contribute to revenue, and the COVID-19 nucleic acid testing business grew significantly: during the pandemic, since the company's headquarters and main customers were in Shanghai, the in vitro diagnostic product business had a great impact, but the company showed strong flexibility. The testing laboratory undertook COVID-19 testing business, which made the company's performance in the second quarter impressive, turning a loss into a profit from the first quarter. By product, the revenue of leukemia molecular test kits was 69,52212 million yuan, a year-on-year decrease of 9.59%. Among them, 15 fused gene kits achieved product revenue of 3,046,200 yuan; lymphoma rearrangement kit products achieved revenue of 11.9041 million yuan, an increase of 13.37% over the previous year; the regular clinical laboratory self-construction project achieved revenue of 73,2174 million yuan, an increase of 366.03% over the previous year. Revenue growth was due to the subsidiary Shanghai Steyte Laboratories undertaking part of the COVID-19 testing business in Shanghai during the pandemic.
Channel advantages have been established in the field of hematologic oncology, and the lymphoma market continues to expand: the company's products and services cover well-known general hospitals in China, well-known hospitals specializing in hematology and oncology diseases, and third-party medical testing laboratories. Its scientific research strength, product and service quality have been recognized by high-quality customers, and it is expected that it will continue to establish brand advantages in the future. In the future, it is expected that the lymphoma gene rearrangement kit has entered the top three hospitals and their distributors. The prospects for future revenue growth are promising. While maintaining its leading position in the field of hematology, the company continues to expand its rich R&D and sales experience in this field to the fields of solid tumors and infectious diseases.
Continuing to maintain high research and development intensity, new products in the field of solid tumors and hematoma can be expected: the company invested 30.476 million yuan in R&D in the first half of 2022, accounting for 17.64% of revenue. As of June 30, 2022, the company has obtained 48 patent authorizations, including 42 invention patents, 5 utility model patents, 1 design patent, and 67 software copyrights. The BCR-ABL fusion gene quantitative test kit and the human EGFR gene T790M mutation test kit are being registered and approved, and 12 Class III registration certificate products, including the human BRAF gene mutation test kit, are in the process of applying for registration. The company's advantages in the field of hematological disease diagnosis have been further strengthened, and new products in the field of solid tumors can be expected in the future.
Profit forecast, valuation and rating: We maintain the company's EPS of 0.77/0.99/1.36 yuan for 2022-2024, and the current price corresponds to 22-24 PE at 51/39/29 times. Considering the company's leading position in the field of hematological diseases and the continuous accumulation of brand advantages, we are optimistic about the company's long-term development and maintain the “buy” rating.
Risk warning: New product development and registration risks; increased risk of market competition; risk of declining performance due to the pandemic.