Event: the company released its semi-annual report for 2022, with revenue of 130 million yuan in the first half of the year, an increase of 6.73% over the same period last year; net profit of 4.8843 million yuan, down 81.64%; and net profit of-7.1374 million yuan, down 129.36% from the same period last year. In the second quarter, the company achieved revenue of 57 million yuan, down 15.11% from the same period last year; net profit from home was-9.0377 million yuan, down 161.19% from the same period last year; and net profit from non-return was-16.1501 million yuan, down 166.43% from the same period last year.
Comments:
The epidemic affects the development of business, and the profit end is under pressure.
The epidemic situation in Shanghai in the first half of 2022 was severe, which had a significant impact on the company's revenue and profits. Revenue side: the company's main production base and customer groups are concentrated in Shanghai and its surrounding areas, the inability to receive and deliver goods during the epidemic has a great impact on the company's performance, although the company has stepped up scheduling since the resumption of work in June, but the performance has not yet fully recovered. Profit side: the cost of epidemic prevention and the rent of the original factory increases during the epidemic, but the cost of raising mice will not be reduced because it cannot be delivered during the epidemic prevention and control period; at the same time, the company further expands its production capacity and personnel scale, and the corresponding costs rise sharply. At present, the company is increasing sales efforts, speeding up production progress, and striving to recover from the impact of the epidemic.
Continue to launch new strains of mice to meet the diversified needs of customers
The company attaches importance to R & D 2 to create 34 new 1. 0 02 yuan 2, with a year-on-year increase of 2.92 million. 05% investment, accounting for 18.01% of business, an increase of 1.59% over the same period last year. As of June 30, 2022, the company has more than 8000 standardized models, including 504 humanized genetic modification models, 62 species of rare disease mice and 43 kinds of immunodeficient mice, which can meet the needs of customers for different strains. Customer stickiness is expected to improve.
Continue to expand production capacity and strengthen multi-site service capacity
In order to meet the growing market demand, the company has actively expanded its production scale, with a total capacity of about 100000 cages by the end of 2021 (Shanghai Banxia Road, Jinke Road, Harley Road, Jinshan I); about 9,000 new cages were put into production at Zhongshan Base in Guangdong Province in the first half of 2022; about 28000 cages in Novartis in Shanghai and about 2,000 cages in Beijing genetic Institute are expected to be put into operation in the near future; and about 8,000 cages in Shanghai Jinshan Phase II are still under construction. As the new capacity is put into production one after another, the company's production capacity is expected to increase to 14-150000 cages, which can better match the growth of customer demand. At the same time, through multi-location layout, the company can respond to customer needs in a timely manner and improve market coverage.
Speed up the layout of overseas business and enhance international competitiveness
On June 7, 2022, the company announced a plan to increase capital to its US subsidiaries, which is expected to increase capital to US subsidiaries with its own capital of US $30 million, which is still under approval. Compared with overseas enterprises, the company has price advantages and rich characteristics of mouse strains, the company actively layout overseas markets, can enhance the company's international competitiveness.
Earnings forecast, valuation and rating
The short-term operating performance of the company will be adjusted by 3.78Universe 5.19amp 6.7 from 7.00 billion Yuanyuan to 4.37 / 592 million yuan, with a growth rate of 13%, 40%, 35%, respectively, and the net profit will be reduced from 0.86 shock 1.25 / 174 million yuan to 0.44 shock 0.88 / 132 million yuan, with a growth rate of-27%, 99%, 49%. The EPS is 0.57 per share, 1.13 per share, the 3-year CAGR is 29%, and the corresponding PE is 91-46-31. The company belongs to the upstream industrial chain of pharmaceutical research and development, benefiting from the sustainable development of medical research and development, we are optimistic that the company will resume rapid growth after the impact of the epidemic recedes and maintain its "overweight" rating.
Risk hint
Repeated risk of epidemic; risk of new product research and development; risk of lower-than-expected customer demand; risk aggravated by market competition; risk of intellectual property protection and technology leakage; moral and ethical hazard.
