Event: the company released its semi-annual report of 2022, with operating income of 381 million yuan in the first half of 2022, an increase of 33.51% over the same period last year, and a net profit of 123 million yuan, an increase of 48.78% over the same period last year, deducting 117 million yuan of non-net profit, an increase of 43.97% over the same period last year.
The epidemic has not changed its strong growth momentum, and production capacity construction has progressed smoothly. In the first half of the year, the company's revenue and profits maintained rapid growth, mainly driven by the rapid growth of dominant varieties, of which the profit growth rate was higher than that of the revenue end, mainly due to the reduction of expenses. The total expense rate (including R & D) during the period was 24.10%, a decrease of 10.90% compared with the same period last year. From a quarterly point of view, 22Q2's revenue was 176 million yuan, up 24.42% over the same period last year; the net profit returned to its mother was 52.3 million yuan, up 34.76% from the same period last year; and 46.45 million yuan was deducted from non-net profit, an increase of 21.76% over the same period last year. 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 project structure has been continuously optimized and the number of customers has increased steadily. There are a total of 19 ongoing projects in 22H1 (13 CRO/CDMO projects and 6 CMO projects), including 11 API projects and 8 advanced intermediate projects, which are distributed in different stages, including 12 clinical projects and 7 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: cost and product structure affect gross profit margin, decrease expense rate and maintain a high proportion of R & D investment. Gross profit margin: 22H1 and 22Q2 gross profit margin are 51.11% (year-on-year-6.63pp, the same below) and 45.84% (- 14.26pp) respectively. We expect the decline in gross profit margin to be mainly affected by the increase in the price of raw materials and product structure. Expense rate: 22H1, 22Q2 sales expense rate 1.06% (+ 0.24pp), 1.50% (+ 0.49pp), management expense rate 10.36% (- 1.00pp), 14.
52% (+ 1.25pp), the financial expense rate-5.76% (- 6.03pp),-13.56% (- 16.71pp), the three expense rates add up to 5.66% (- 6.79pp) and 2.46% (- 14.98pp), of which the financial expense rate decreased significantly compared with the same period last year, mainly due to the increase in exchange gains caused by changes in the exchange rate of the US dollar. R & D expenses: 22H1, 22Q2 R & D expenses 28.77 million yuan (- 13.58%), 18.17 million yuan (+ 2.70%), accounting for 7.54% (- 4.11pp), 10.31% (- 2.17pp) of income, the company maintains a high proportion of R & D investment, we expect the decline in revenue is mainly due to the rapid growth of operating income.
Profit forecast and investment advice: we expect the company's 2022-2024 income to be 8.08,10.94 and 1.483 billion yuan, up 41.9%, 35.3% and 35.6% over the same period last year, and the net profit from home is 2.19,3.13 and 445 million yuan, up 50.2%, 43.0% and 41.9% over the same period last year. The current share price corresponds to 2022-2024 PE times 52-37-26. 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.