Event description
The company disclosed that in the third quarter of 2022, the operating income in the third quarter was 85.441 million yuan, an increase of 25.78% over the same period last year, and the net profit was 2.902 million yuan, a decrease of 76.07% over the same period last year. The net profit after deduction was-11.47 million yuan, a decrease of 236.81% over the same period last year, and the corresponding EPS was 0.04 yuan.
Event comment
Income recovered steadily. The company disclosed that in the first three quarters of 2022, the company achieved revenue of 215 million yuan, an increase of 13.55% over the same period last year, a year-on-year increase of 13.55%, a net profit of 7.786 million yuan, a decrease of 79.90%, and a deduction of non-return net profit of-18.608 million yuan, a decrease of 156.91% over the same period last year. Among them, the revenue, net profit and net profit after deducting non-return were 85.441 million yuan, 2.902 million yuan and-1147 million yuan respectively. At present, the company is in the recovery stage after the epidemic, although the negative impact of epidemic control on newly signed orders in the first half of the year is still warm, and revenue recognition in the third quarter is still affected, but on the whole, compared with 2022Q2, the revenue side is gradually recovering, and we are optimistic about the company's long-term competitiveness in the field of model animals.
Profits are still under pressure. At the profit level, the company is still under pressure, mainly reflected in the expansion of the company's production scale and a large increase in costs, specifically: 1) the production capacity has increased from 50,000 cages last year to 110,000 cages (in the second half of 2021, the Jinshan base of the fund-raising project was completed and put into production, adding about 50,000 cages. In the first half of 2022, the Zhongshan base in Guangdong was put into production, adding about 9,000 cages), the corresponding depreciation and amortization, material fees, energy fees, etc., caused the pressure on the cost side; 2) the Shanghai Novartis base was still in the stage of decoration and trial operation in the third quarter. Expenditure is relatively large; 3) in addition, equity incentive fees also bring pressure on the profit side.
On the whole, the company's profits are still under pressure during the gradual recovery of revenue.
R & D is prepared in advance, and innovation drives long-term development. In the first three quarters of 2022, the company invested 44.9579 million yuan in R & D, an increase of 32.78% over the same period last year, of which R & D investment in the third quarter alone was 21.545 million yuan, an increase of 55.48% over the same period last year, and even as high as 80% month-on-month growth. The R & D investment is planned in advance, and during the reporting period, the company continues to strengthen the research and development of verification data such as humanized models. As of 2022H1, we have independently developed more than 8000 standardized animal models, and the company has 504 humanized models with popular targets such as PD-1, CTLA-4, CD47, CD24 and so on. In terms of overseas business, the company has established preliminary cooperative relations with customers in the United States, Europe and Japan to provide them with genetically modified animal models and technical services. the company is expected to gradually open overseas markets by virtue of price advantages, customer word-of-mouth, humanized mouse models and other characteristic products.
The company's operating income from 2022 to 2024 is expected to be 318 million yuan, 428 million yuan and 585 million yuan, an increase of 15.4%, 34.9% and 36.5% respectively over the same period last year. The net profit of the parent company is 49 million yuan, 75 million yuan and 106 million yuan, an increase of-19.4%, 52.6% and 41.4% over the same period last year. The current stock price corresponds to 75 times, 49 times and 35 times of PE, respectively, maintaining the "buy" rating.
Risk hint
1. COVID-19 's epidemic situation has a negative impact on the company's operation.
2. the competition in the industry has intensified.
3. Risk of failure in new product research and development
4. The growth rate of the industry has slowed down, and the performance growth has fallen short of expectations.