东富龙(300171):疫情背景下业绩符合预期 海外增长亮眼 有望打开长期成长空间

East Fulong (300171): the performance is in line with the expected overseas growth in the context of the epidemic, which is expected to open up room for long-term growth.

國盛證券 ·  08/30/2022  · Researches

East Fulong publishes its semi-annual report for 2022. 2022H1 realized operating income of 2.427 billion yuan, an increase of 34.11% over the same period last year, a net profit of 403 million yuan, an increase of 18.33% over the same period last year, and a net profit of 371 million yuan, an increase of 21.28%. Quarter by quarter: 2022Q2 achieved operating income of 1.19 billion yuan, an increase of 8.83% over the same period last year; net profit of 191 million yuan, down 16.81%; and net profit of 173 million yuan, down 15.42% from the same period last year.

Viewpoint: the performance is in line with expectations, Q2 management is greatly disturbed by the epidemic, firmly committed to strategic hardening and deep ploughing, platform pharmaceutical equipment and consumables leaders ride through the wind and waves, internationalization emerges temporarily, and acceleration is expected to open the ceiling of long-term growth.

Affected by the order delivery time and other factors, the proportion of product line revenue fluctuated slightly in the first half of the year. 1) the income of single injection machine and system is 1.086 billion yuan (+ 64.72%), accounting for 44.73% of the total revenue, and the gross profit margin is 45.72% (- 3.58%), which is the core source of income. 2) the income of bioengineering unit and system is 488 million yuan (+ 21.78%), accounting for 20.09% of the total revenue, and the gross profit margin is 39.90% (- 14.09%). It is speculated that the change of gross profit margin is mainly related to the change of sales product structure. 3) the income from medical equipment and consumables was 162 million yuan, accounting for 6.67% of the total revenue, and the gross profit margin was 70.34% (+ 6.68%), which decreased slightly.

The domestic market is the main source of income, overseas growth is bright, internationalization is on the rise. 1) domestic income is 1.802 billion yuan (+ 65.07%), accounting for 74.26%. 2) overseas income is 625 million yuan (+ 100.49%), accounting for 25.74%. The growth rate of income in the Asian region is as high as 147%, leading the growth.

Q2 gross profit margin improved month-on-month, and the expense rate remained stable during the period. We believe that the impact of the short-term epidemic will not be a limiting factor to the company's annual performance, and Q3 is expected to usher in a full recovery; in the long run, the company has a complete product layout, rich customer resources and leading overseas development. It is a platform supplier of domestic pharmaceutical equipment and consumables with significant competitive advantages. In addition, in the field of CGT, the company is a leader in domestic CGT equipment and consumables. In the first half of the year, it has reached strategic cooperation with many domestic cell drug companies, such as Yucadi, Zun Zun Biological, Yunzhou Biological, Yimiao Shenzhou, etc., to accelerate the localization of core equipment for cell gene therapy.

Profit forecast and investment advice: we expect the company to achieve a net profit of 1.033 billion yuan, 1.376 billion yuan and 1.806 billion yuan from 2022 to 2024, an increase of 24.8%, 33.2% and 31.3% respectively over the same period last year. Regardless of fixed increment and dilution, the current stock price corresponds to 16x, 12x and 9x respectively. If the amortization effect of equity incentive expenses is excluded, the net profit from 2022 to 2024 will be 1.082 billion yuan, 1.403 billion yuan and 1.828 billion yuan, an increase of 30.7%, 29.7% and 30.2% respectively over the same period last year. Maintain a "buy" rating.

Risk tips: the impact of the epidemic on delivery at home and abroad is not as expected; the sales and promotion of new products is not as expected.

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