东富龙(300171):营收保持稳定增长 注射剂业务优势持续

Dongfulong (300171): Revenue continues to grow steadily

國信證券 ·  05/19  · Researches

Revenue growth has been steady, and the profit side is growing slower than the revenue side. In 2022, the company achieved revenue of 5.469 billion yuan (+30.46%), net profit of 847 million yuan (+2.27%), net profit of 780 million yuan (+2.56%), net profit of non-homo mother of 780 million yuan (+2.56%); 2022Q4 revenue of 1,652 million yuan (+26.12%), net profit of 242 million yuan (-10.20%), net profit of non-homo mother of 213 million yuan (-14.56%); 2023Q1 revenue of 1,423 million yuan (+14.99%), net profit of returned mother of 231 million yuan (+926 million yuan) %), after deducting net profit of 225 million yuan (+13.85%) from the mother's net profit. The company achieved good revenue growth in 2022 and 2023Q1, and the profit side grew slower than the revenue side.

Gross profit margin and net interest rates have declined. The company's gross margin for 2022 and 2023Q1 was 39.05% (-7.06 pp), 38.45% (-1.83 pp), and the net interest rate was 15.48% (-4.27 pp), 16.24% (-0.85 pp). The profit side was under pressure, mainly due to: 1) the international supply chain was tight and raw material prices rose; 2) The company simultaneously strengthened personnel and reserves in all aspects of R&D, management, sales, manufacturing and service. Labor costs and various expenses increased accordingly; 3) Affected by the external environment, overseas product delivery was delayed and gross profit was high. The decline in the share of business reduced the overall gross profit margin.

Stand-alone injectables and systems in the core business performed well. In 2022, with the exception of the decline in revenue from medical equipment and consumables, revenue from the remaining eight major businesses grew. Among them, stand-alone injectables and systems performed well, achieving revenue of 2,268 billion yuan, an increase of 64.19% over the previous year, accounting for more than 40% of revenue. As the company's core strength business, it is expected to drive the expansion of customers in the front-end bioengineering sector and provide the company with competitive products to enter the international market.

The share of short-term overseas business has declined, and long-term internationalization has continued. In 2022, the company's overseas business revenue was 1,049 million yuan (+0.93%), accounting for 19.18% (-5.61 pp) of total revenue. Affected by the external environment, overseas business delivery was delayed, and the share of revenue declined. The company has steadfastly promoted an international strategy. Since 1999, it has been exporting products overseas, and has successively set up overseas subsidiaries to strengthen localized marketing and services. The number of overseas customers and the area covered have gradually expanded. In the long run, the proportion of international business is expected to continue to increase, and the company's gross margin will continue to improve.

Risk warning: repeated epidemics, new orders falling short of expectations, supply chain risks, R&D failure. Venture capital suggestions: The injectables sector performed brilliantly, the international strategy continued to advance, and “buying” was maintained.

The company achieved good revenue growth, and the profit side growth rate slowed. Considering pressure on the cost side, the 2023/2024 profit forecast was lowered and the 2025 profit forecast was added. The estimated net profit for 2023-2025 was 10.61/1347/1,693 billion yuan, a year-on-year growth rate of 25.36%/26.95%/25.63%. The current stock price corresponds to PE = 17/14/11x. As the external environment stabilizes, the internationalization strategy continues to deepen, which is expected to drive the company's steady and positive development and maintain “buying”.

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