The company released its third quarterly report for 2022: the company's income in the first three quarters was 215 million yuan (+ 31.34%). The following are year-on-year income, net profit of 34 million yuan (+ 16.69%), and net profit of 29 million yuan (+ 52.17%). In the third quarter, the company realized income of 80 million yuan (+ 23.86%), net profit of 14 million yuan (+ 2%), and non-return net profit of 11 million yuan (+ 37.01%).
The company's outstanding orders on hand exceeded 360 million yuan, and the growth rate of CDMO business slowed down due to factors such as epidemic disturbance and project implementation cycle. According to the type of business, the income of gene therapy CRO in the first three quarters of 2022 was 43.2448 million yuan (+ 13.4%), and that of Q1-Q3 was 1.04 million yuan (+ 13.93%, 13.3437 million yuan (- 5.87%) and 18.8611 million yuan (+ 32.18%), respectively. CRO business recovered well in the third quarter of 2022. The income of gene therapy CDMO business is 166.0724 million yuan (+ 36.87%), of which the income of Q1-Q3 is 60.9427 million yuan (+ 69.82%), 45.9634 million yuan (+ 26.42%) and 59.1663 million yuan (+ 20.52%) respectively. The growth rate has slowed down under the influence of factors such as epidemic disturbance and project implementation cycle, and is expected to gradually return to normal. By the end of September 22, the company had more than 360 million yuan in outstanding orders.
The new production capacity in Hong Kong is expected to be put into production at the beginning of 23 years, and the size of the company's team is increasing rapidly. The production capacity construction process and equipment line of the first phase of the company in Hong Kong has been adjusted, adding about 5000m2 cell production line on the basis of the original plan to build 11 virus production lines, which are expected to be put into trial operation at the beginning of 2023 to make full preparations for further production capacity release. The size of the company's team has increased rapidly, and by the end of September 2022, there were a total of 611 people in service (excluding interns and labor staff).
Profit forecast and investment advice. We estimate that the company's net profit from 2022 to 2024 will be 76 million yuan, 140 million yuan and 203 million yuan respectively, maintaining the judgment of the company's fair value of 26.4 yuan per share and giving it a "buy" rating.
Risk hint. Technology iteration risk, policy and regulatory change risk, supply chain change risk.