Overview of events
On August 25, 2022, Jiankai Technology released its semi-annual report of 2022: the operating income was 215 million yuan, an increase of 37.91% over the same period last year; the net profit was 111 million yuan, an increase of 38.15% over the same period last year; and the net profit of deducting non-return was 96 million yuan, an increase of 23.95% over the same period last year.
The epidemic does not reduce the steady growth trend of the company's revenue, and the profit end continues to be under pressure affected by R & D and equity payments. 1) Revenue: the company's H1 main revenue shows a relatively rapid growth, of which product sales income is 187 million yuan (year-on-year + 33%). Technical services income 28 million yuan (year-on-year + 110%). Among the product sales revenue, the domestic sales revenue is 77 million yuan (year-on-year + 45%), which is due to the increase in the number of orders brought about by the continuous sales of listed products by major domestic customers; the export revenue is 1.10 yuan (year-on-year + 26%). It is the steady growth of orders for end-end products of foreign medical devices, as well as the increase in product usage brought about by the promotion of clinical R & D progress of overseas downstream medical R & D customers. Q2 alone, revenue is 114 million yuan (year-on-year + 33%, month-on-month + 13%).
2) profit side: in terms of gross profit margin, H1 is 85.20% (year-on-year + 0.51pct) in 2022. In 2022, the net profit of H1 is 111 million yuan, and the net interest rate is 51.87% (year-on-year + 0.10pct), which remains basically unchanged. The net profit of single Q2 is 59 million yuan (year-on-year + 32%, month-on-month + 13%). Excluding non-recurrent profit and loss, H1 and Q2 deduct non-net interest rates of 44.76% (year-on-year-5.04pct) and 46.47% (year-on-year-3.01pct) respectively, mainly due to higher R & D expenses and equity payment fees.
The three major research projects are progressing smoothly, the heavyweight polyethylene glycol irinotecan project clinical II phase steadily advances H1 company's R & D investment of 43 million yuan (year-on-year + 137%) in 2022, and the R & D expenditure rate is 19.99%, maintaining a high level of R & D investment, mainly because the company continues to increase the promotion of independent research and development of polyethylene glycol irinotecan, JK-2122H and JK-1119I projects, and actively layout other R & D pipelines at the same time. In 2022, the sales expenses and management expenses of H1 company were 8 million yuan and 24 million yuan respectively, and the rates of use sales and management expenses were 3.63% and 11.19% respectively, which remained at the normal expenditure level.
PEG new product research and development is in full swing, the company continues to improve the competitiveness of products and large-scale production PEG application field is in the stage of sustained and rapid expansion, has expanded from macromolecular protein drug modification to small molecular drugs, LNPs delivery systems, cytokines, nucleic acid drugs and so on. The company is one of the few well-known enterprises in the world that can provide high-purity and large-scale cGMP for the production of medical PEG and derivatives, and actively cooperate with relevant enterprises at home and abroad in the emerging application scenarios, it is expected to fully grasp the market demand brought about by technology change, and the revenue volume will reach a new level.
Investment suggestion: as the leader of domestic PEG industry, with the continuous promotion of pipeline research and the continuous enrichment of application scenarios, the future performance growth has certainty. Considering the impact of equity incentive fees, we estimate that the company's revenue from 2022 to 2024 will be 651 million yuan, and the net profit will be 2.41 million yuan, corresponding to a PE multiple of 53 × / 39 × / 29 ×. Maintain the recommended rating.
Risk tips: the global COVID-19 epidemic situation is repeated; product research and development is not as expected; downstream product collection risk.