东富龙(300171):疫情扰动不改全年预期 海外业务持续开拓

Dongfulong (300171): Expectations that overseas business will continue to develop throughout the year without changing the impact of the epidemic

招商證券 ·  08/31/2022  · Researches

The company released 2022 semi-annual report: in the first half of 2022, the operating income, return net profit and non-return net profit were 24.27,4.03 and 371 million yuan, up 34.11%, 18.33% and 21.28% respectively over the same period last year. Among them, the second quarter realized operating income, return net profit, deducted non-return net profit of 11.90,1.91, 173 million yuan, 8.83%,-16.81%,-15.42%.

The epidemic disturbs the delivery rhythm of orders, Q2 short-term pressure does not change the annual performance expectations. The closure of the epidemic in Shanghai since March has brought resistance to the company's sales, manufacturing, logistics, procurement and other links, and has brought a certain disturbance to the rhythm of order delivery, revenue recognition and cost. Q2 revenue of 1.19 billion yuan, a slight decline in month-on-month, + 8.83% compared with the same period last year; the profit end is under short-term pressure due to the decline in gross profit margin. We believe that the company's sufficient orders-on-hand is an effective guarantee for the annual performance, with the full recovery of the operation of Q3 is expected to accelerate, the annual performance is expected to remain unchanged.

From a sub-business point of view, revenue from key products maintained eye-catching growth. Among them, the income of injection stand-alone and system in the first half of the year was 1.086 billion yuan, + 64.72% compared with the same period last year; the income of bioengineering single machine and system in the first half of the year was 488 million yuan, + 21.78% compared with the same period last year, of which Q2 realized income of 346 million yuan, a significant increase from the previous year (+ 143.66%); the income of medical equipment and consumables reached 162 million yuan in the first half of the year, + 27.93% of the same period last year. The income of the solid preparation business in the first half of the year was 68 million yuan, which was + 109.71% compared with the same period last year.

From a sub-regional point of view, overseas business has been developed smoothly and its share has increased. The company began to export its products overseas in 1999, and successively set up overseas subsidiaries to strengthen local marketing and services, and the number of overseas customers and coverage areas gradually expanded. In the first half of 2022, the company's overseas income reached 625 million yuan, + 39.50% compared with the same period last year, accounting for 26% of the total revenue. Among them, Asia helped the region to grow rapidly, with revenue of 399 million yuan in the first half of the year, + 146.64% compared with the same period last year.

From a long-term perspective, with the upgrading of biopharmaceutical equipment demand and the general trend of domestic substitution, the company implements the "M+E+C (AI)" strategy, "one body and two wings" product strategy (speeding up the layout of macromolecules and CGT layout, and recently reached strategic cooperation with Yunzhou, Yucadi, Yemiao Shenzhou, etc.) + globalization + fund-raising project expansion (3.2 billion to help expand production, and back-end equipment expansion to meet the fast-growing global demand. The expansion of complex preparation equipment drives the growth of traditional injection business, and the life science industrial base helps CGT launch new products) to open up the future development.

Investment advice and profit forecast: we believe that Q2 short-term pressure does not change the expected high annual performance, CGT and other emerging areas of the "instrument + equipment + consumables" integrated layout and global expansion to open the growth flexibility, it is estimated that 2022-2024 to achieve home net profit of 10.2 shock 1.32 billion yuan, corresponding to PE17/16/13x, to maintain the "overweight" rating.

Risk tips: intensified market competition, the release of new products is not as expected, newly signed orders are not as expected, COVID-19-related income decline risk and so on.

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