Event: The company released its 2024 quarterly report. In the first quarter of 2024, the company achieved operating income of 1,222 million yuan, down 5.42% year on year; net profit to mother was 317 million yuan, up 20.91% year on year; net profit after deducting non-return to mother was 313 million yuan, up 23.82% year on year
Q1 Stable performance and excellent profit performance. 24Q1 maintained relatively stable revenue under a high base for the same period last year, and profit growth was even more obvious. With 24Q1 gross profit margin of 56.08% (YoY 10.08pp, YoY 1.31pp) and net profit margin 25.92% (Y+5.64pp, YoY +6.71pp), we expect a further decrease in pulping costs. Plasma stations and plasma collection volume: In 2023, 79 active single plasma collection stations collected 2,415 tons of plasma, an increase of 18.67% over the previous year. Batch issuance: The 24Q1 albumin batch issued 56 batches (-23%), and the static propylene batch issued 39 batches (-53%).
The rate was relatively stable during the period, and R&D investment continued. The 2024Q1 sales cost was 56 million yuan (-19.96%), and the sales rate was 4.54% (-0.83pp). Management expenses of 108 million yuan (+6.23%), management fee rate 8.86% (+0.97pp).
R&D expenses of RMB 0.24 million (+156.32%), R&D expenses 2.00% (+1.26pp). Financial expenses -$14 million (-130.95%), finance rate -1.18% (-0.70pp). 2024Q1 had an inventory balance of $3,078 billion, accounting for 20.81% of assets (+3.93pp).
The listing of large varieties of chromatographic isobutyl and recombinant 8-factor is expected to increase the profit of tons of slurry. Chengdu Rongsheng's core large varieties of injectable recombinant human coagulation factor VIII and intravenous human immunoglobulin (pH4, 10%) were marketed in 23Q3. Human fibrinogen has applied for marketing, subcutaneously injecting human immunoglobulin, and recombinant human coagulation factor VIIa to launch phase III clinical trials, and injectable recombinant human coagulation factor VIII-Fc fusion protein was approved for clinical use in 23Q4. Phase III clinical trial of human fibrinogen produced in Shanghai was launched. The prothrombin complex for people with blood production in Lanzhou has applied for marketing. Human prothrombin complex from Guizhou was clinically approved in 23Q4. Promoting the launch of multiple products will help improve plasma utilization, thereby further increasing the profit of tons of plasma.
Profit forecast and investment advice: We expect the company's revenue to be 61.79, 73.46 and 8.740 billion yuan in 2024-2026, up 19.28%, 18.88%, and 18.97% year-on-year; net profit to mother will be 13.28, 15.81, and 1,870 billion yuan, respectively, up 19.64%, 19.09%, and 18.28% year-on-year. The company leads the industry in pulping volume and number of slurry stations. In the future, as efficiency increases and production capacity releases, profits are expected to continue to increase. New products such as hydrochromatography and eight recombinant factors provide long-term space, giving them an “increase in weight” rating.
Risk warning: Risk of falling short of expectations for integration, risk of fluctuating blood product prices, risk of declining gross margin in the blood products business.