1H22 gross profit margin falls, performance is under pressure
The company issued a 22-year mid-year report on 1H22 revenue of 940 million yuan (+ 10.2%yoy) and net profit of 60 million yuan (- 58.8%yoy), deducting 50 million yuan (- 68.4%yoy) of non-parent net profit, of which 2Q22 revenue-13.4%yoy, return net profit-117.7%yoy, deducted non-return net profit-120.6% Yoyjue 1H22 revenue decline mainly due to the epidemic caused the product production and sales below the company's expectations Profit-end growth deviates from the revenue side due to a sharp rise in the price of upstream raw material iodine, which leads to a decline in gross profit margin. Considering that the upstream iodine price remains high, we adjust the company's 22-24 net profit to RMB 2.01, 458), and give 23-year 18xPE (the iodine price is high in 22 years, we expect the iodine price to decline in 23 years, with reference to 23e comparable company Wind consensus expected average PE 16x, contrast medium faucet gives a premium) The target price is 24.02 yuan (the previous value is 48.43 yuan), maintaining the "buy" rating.
Non-public offering is launched to further expand API/CDMO production capacity
On the same day, the company issued a pre-plan for the non-public offering of A-shares, which intends to raise no more than 2.05 billion yuan and no more than 103 million shares (that is, 103 million shares), of which: 1) 1.2 billion yuan is intended for the annual production of 1550 tons of Nonionic CT contrast agent series API projects; 2) 300 million yuan is intended for the annual production of 7710 tons of iodine-related compounds and CMO/CDMO projects; and 3) 550 million yuan is intended to supplement working capital.
We believe that this additional offering will help to enhance the company's contrast agent API scale production advantages and market control, while replenishing the production capacity of iodiferol, iomeprol, iopramine and other APIs, helping the company's long-term development.
The gross profit margin decreased due to the increase in upstream iodine prices, and the sales expense rate of preparation stores increased. 1H22 realized a gross profit margin of 29.3%, which was lower than that of 1H21, of which 1Q22/2Q22 gross profit margin was 31.3%. The decline was mainly due to: 1) the increase in upstream commodity prices led to a rise in costs and a significant increase in 2Q22 iodine prices (import iodine unit price: 6M22 rose 43% compared with 12M21, according to customs statistics platform) And the company's low-cost iodine inventory has been basically consumed. 2) the varieties of collection preparations with low gross profit began to be shipped; 3) the new production capacity was mainly iohexol API, and the gross profit rate was lower than that of iohexol.
Considering the current high global iodine prices, we expect 2H22's gross profit margin to remain under pressure. Iodine prices have fallen since 23 years, and gross profit margins are expected to stabilize and recover. 1H22 increased the promotion of preparations, the rate of sales expenses increased to 3.8% compared with the same period last year, and the rates of management expenses and R & D expenses were stable.
Contrast agent API& preparation: epidemic situation affects product release
1) contrast agent API: we expect the revenue of 1H22 to exceed 600 million yuan, the sales volume of the three APIs is basically the same as that of the same period last year, and the unit price has increased slightly, but due to the change of product structure, the sales volume has declined compared with the same period last year. We estimate that API shipments in 22 years are about 1600t (vs 21 is about 1400t). 2) contrast agent preparation: 1H22 Shanghai Si Tai Li achieved an income of 157 million yuan and a net profit of-24.4 million yuan (mainly because 2Q22 was affected by the epidemic in Shanghai and other places). Considering the fifth and seventh batch of 10M21 collection implementation (expected 11M22 implementation) and new products coming on the market to supplement the product line (ioferol and Iomeprol will be approved soon), we expect to achieve about 400 million yuan in revenue for the whole year, and the profit end is expected to make a profit.
Risk tips: product sales are not as expected, the risk of product price reduction, R & D progress is not up to expectations.