Items:
The company released its 2022 semi-annual report, achieving an income of 942 million yuan, an increase of 10.22% over the same period last year; a net profit of 64 million yuan, down 58.83% from the same period last year; and a net profit of 52 million yuan, down 68.38% from the same period last year. The company's performance was lower than expected.
Of this total, 2022Q2 reached 425 million yuan in a single quarter, down 13.41% from the same period last year; the net profit from home was-16 million yuan, down 117.74% from the same period last year; and the net profit from non-return was-21 million yuan, down 120.55% from the same period last year.
The company plans to issue shares in private to no more than 35 specific investors, raising no more than 2.05 billion yuan.
Peace viewpoint:
The first half of the year was dragged down by costs and fell short of expectations. The 2022H1 income is 942 million yuan (+ 10.22%), and the return net profit is 64 million yuan (- 58.83%). The company's performance is lower than expected, of which 2022Q2 revenue is 425 million yuan (- 13.41%) and home net profit is-16 million yuan (- 117.74%). We think it is mainly affected by the epidemic in the second quarter and the cost. 2022H1's gross profit margin is 29.27% (- 13.48 pp). The sharp decline in gross profit margin is mainly affected by the rise in the price of upstream raw materials, especially iodine. According to wind, the average unit price of iodine imports in June 2022 was 49.62US dollars / kg, up 51 per cent from June 2021. The sales expense rate of 2022H1 Company is 3.77% (+ 2.88 pp), which is mainly caused by the development of preparation business, supplementary sales team and marketing; the financial expense rate is 6.11% (+ 2.17 pp), mainly due to the increase of exchange loss caused by exchange rate fluctuations.
In the first half of the year, preparation revenue increased sharply compared with the same period last year, while profits declined. Shanghai Si Taili, the main subsidiary of 2022H1 preparation plate, achieved an income of 157 million yuan, an increase of about 130% over the same period last year, with a slight increase compared with the previous year, but the net profit of 2022H1 was-24.4 million yuan, down about 29% from the same period last year, which we believe is mainly affected by price reduction and rising costs. 2022 is the complete year of collection and production of iohexol and iohexol, at the same time, the seventh batch of iohexol won the bid, we think that the preparation income is still expected to achieve high growth in the whole year.
Contrast media industry layout advantage is obvious, waiting for the company's performance inflection point, maintain the "recommended" rating. From the medium-and long-term point of view, the company still belongs to the absolute leader of the iodine contrast agent industry chain and has a lot of room for growth. However, short-term performance is dragged down by costs. We adjusted our 2022-2024 net profit forecast to 337 million, 535 million, 753 million yuan (original forecast 460 million, 651 million, 872 million yuan), and the current market value corresponds to 21 times PE in 2022. After the company's performance ushered in the inflection point, the performance-to-price ratio is prominent, maintaining the "recommended" rating.
Risk hint. 1) market competition risk: if competitors are put into production, it will have an adverse impact on the company; 2) R & D risk: the R & D progress of the products under research may be lower than expected; 3) overseas development risk: the overseas business development of preparations or APIs may be less than expected.