The preclinical CRO integrated layout advantage appears, the performance maintains the high growth on August 22, the company releases the 2022 semi-annual report. 2022H1 achieved revenue of 743 million yuan, an increase of 53.16% over the same period last year; net profit of 163 million yuan, an increase of 43.77% over the same period last year; if deducting the expenses of 2022H1 affected by the epidemic, the net profit increased by 57.74%; after deducting 154 million yuan, the net profit of 2022Q2 increased by 40.39%, an increase of 43.12% over the same period last year; and the net profit of home was 85 million yuan, an increase of 25.63% over the same period last year After deducting the non-return net profit of 79 million yuan, an increase of 19.74% over the same period last year; on the whole, under the influence of the epidemic, the company's operating performance still maintained steady growth.

Considering the impact of the epidemic, we slightly downgrade our profit forecast for the company. It is estimated that the return net profit of the company from 2022 to 2024 will be 457, 721 and 1.097 billion yuan (originally expected to be 468 and 730), and EPS will be 5.26 8.30 and 12.62 yuan, and the current share price will correspond to 44.7 and 41.0 cusps of PE. In view of the strong certainty of the company's subsequent performance growth, the "Buy" rating will be maintained.

Newly signed orders, personnel and laboratory sites all maintained steady growth. From the perspective of business performance, 2022H1 Medici's revenue from drug discovery and pharmaceutical research services was 341 million yuan, an increase of 31.09% over the same period last year, while newly signed orders totaled 680 million yuan, an increase of 42.88% over the same period last year. In order to match business development, the business had 1627 R & D personnel, an increase of 50.37% over the same period last year. Revenue from preclinical research services was 402 million yuan, an increase of 79.16% over the same period last year, maintaining rapid development; newly signed orders of 988 million yuan, an increase of 79.62% over the same period last year, and a total of 827 related R & D personnel, an increase of 37.38% over the same period last year, is expected to continue to improve. On the whole, 2022H1 signed a new order of 1.668 billion yuan, an increase of 62.58% over the same period last year.

In addition, the company's laboratory area is steadily expanding, currently has 81600 square meters of R & D laboratory, has been put into use of the laboratory area of 66900 square meters, the laboratory area under construction is 14700 square meters.

Based on the steady growth of newly signed orders, personnel and laboratory sites, we believe that Medici has a strong certainty of high performance growth. In R & D, 2022H1 has increased its R & D investment in PROTAC technology, ADC, oligonucleotide drugs / mRNA vaccines to meet the new needs of the development of the innovative drug industry.

Risk tips: lower-than-expected delivery of orders; loss of core technical personnel; intensified market competition; environmental protection and production safety risks.