Event: The company released a semi-annual performance forecast for 2024: achieving net profit of 0.315-0.344 billion yuan, +120%-140% year-on-year.
Comment:
Sales in the blood products market are booming, and the performance has exceeded expectations. The 24Q1 company achieved net profit of 0.122 billion yuan, +116% year over year. According to the company's performance forecast, 24Q2 is expected to achieve net profit of 0.193-0.222 billion yuan, or +122%-155% year-on-year. Mainly due to booming sales demand in the blood products market. Raw plasma collection increased relatively well over the same period last year, and the number and sales volume of the company's sellable products increased in the first half of 2024. The boom in blood products continues. In particular, the JingC terminal is in a tight balance, and overall supply is in short supply.
The development and acceptance of plasma stations continues to advance to ensure the steady growth of plasma collection. The company surpassed 1,200 tons of pulp collection in '23, ranking first in the 1000-ton class in the domestic blood products industry. Currently, the total number of plasma stations in the company has reached 38. Among them, Shuanglin, Guangdong has 19 single plasma collection stations, and Pacifico has 19 single plasma collection stations. The company's annual pulping volume is expected to exceed 1,400 tons in 2024, achieving steady and rapid growth.
Continue to invest in the development of new products to improve the overall utilization rate of plasma. Currently, Guangdong Shuanglin has 8 varieties in 3 categories, and Pacifico has 9 varieties in 3 categories, bringing the total number of varieties to 11. The company is developing more than 10 products at a rapid pace. The number of products will continue to increase in the future, and the number of products will rank among the highest in the industry.
Among them, Guangdong Shuanglin's next-generation intravenous human immunoglobulin has been approved for clinical drug trials. With the continuous increase in the number of the company's blood products and the upgrading of products such as isopropyl, the company's comprehensive plasma utilization rate is expected to continue to increase, laying a solid foundation for long-term growth.
Profit forecast, valuation and rating: The blood products market remains booming, maintaining the company's 2024-2026 net profit forecast of 0.782/0.934/1.086 billion yuan, up 27.71%/19.54%/16.20% year-on-year. The current price of PE is 26/22/19 times, respectively, maintaining a “buy” rating.
Risk warning: Risk of pulping falling short of expectations; risk of batch issuance falling short of expectations.