In 2020, the company made a significant contribution to epidemic prevention and control at home and abroad, and its performance increased significantly at the same time. The performance of 2021Q1 company keeps growing at a high speed. Adjust the company's EPS forecast for 2021-2022 to 4.43 euro 4.04 yuan (the original 2021-2022 EPS forecast value 1.37 yuan 1.53 yuan), increase the 2023 EPS forecast to 4.37 yuan, corresponding to the times of PE on 29-32-30, and maintain the "buy" rating.
Benefiting from the COVID-19 test, the deduction of non-net profit increased 8 times compared with the same period last year. In 2020, the company's operating income was 8.397 billion yuan, an increase of 199.86% over the same period last year. The return to the mother and the deduction of non-net profit were 2.09 billion / 2.049 billion yuan respectively, an increase of 656.43% and 825.16% respectively over the same period last year. Benefiting from the significant increase in demand for COVID-19 testing reagents at home and abroad, the company's revenue and profits have increased significantly. 2021Q1 achieved a revenue of 1.563 billion yuan, an increase of 97.60% over the same period last year. The return to the mother and the deduction of non-net profit were 525 million / 541 million yuan respectively, an increase of 274.94% and 369.01% respectively over the same period last year, and the performance maintained rapid growth. The company plans to pay out 3.5 yuan (including tax) for every 10 shares.
Precision medical leading enterprises, a comprehensive layout of gene testing industry chain. According to the section in 2020: 1 Reproductive health: income 1.178 billion yuan, an increase of 0.12% over the same period last year. The company has cumulatively completed more than 8.4 million cases of non-invasive birth screening, and 2021Q1 has upgraded Anxinke neonatal genetic disease screening products to help genetic disease screening. 2 tumor prevention, control and transformation: income 351 million yuan, an increase of 23.99% over the same period last year. The company built tumor "pre-screening, diagnosis and monitoring" closed loop around various types of tumors. In the second half of 2020, the company launched customized monitoring products of Huaxian micro-tumor MRD and Huaganning non-invasive liver cancer screening gene monitoring products; 3 infection prevention and control: income 670 million yuan, an increase of 724.22% over the same period last year, mainly benefiting from the contribution of COVID-19 detection. 4 multiple groups to learn from big data and synthetic business:
Revenue of 626 million yuan, down 8.15% year on year in the second half of 2020, the company launched new FFPE sample proteomics quantitative and neurotransmitter targeted metabolite detection services; 5 precision medicine comprehensive solution: mainly for novel coronavirus nucleic acid detection kit and "fiery Eye" laboratory integrated solution service income, 2020 business income of 5.562 billion yuan, an increase of 873.70% over the same period last year, a significant contribution to the performance. 2021Q1 due to the repeated epidemic situation of COVID-19 overseas, novel coronavirus's testing demand still exists, 2021Q1's comprehensive solution business of infection prevention and control and accurate medical testing services has achieved rapid growth, in addition, reproductive health-related business income has achieved steady growth compared with the same period last year, and tumor prevention and control, multi-group big data services and synthetic business income has increased significantly compared with the same period last year.
COVID-19 test kit and "Fire Eye" laboratory, the provider of integrated solution for infection prevention and control, have achieved remarkable success in the two-line layout. The company is an integrated solution provider of infection prevention and control. COVID-19 testing reagents have won multinational market access and entered the WHO emergency use list. COVID-19 testing products have covered more than 180 countries and regions by the end of 2020. In addition, "Fire Eye", a professional biological nucleic acid laboratory launched by the company during the epidemic, has made a significant contribution to high-throughput population rapid testing and emergency testing. By the end of 2020, the company had set up more than 80 "fire eye" laboratories in nearly 30 countries and regions around the world, with a maximum daily test flux of more than 1 million people.
The cash flow is good and the investment in R & D continues to increase. The net cash flow of operating activities in 2020 and 2021Q1 was 3.601 billion / 132 million yuan, respectively, compared with the same period last year, which was + 1506.52% and 30.20% respectively, and the cash flow performed well. The company's R & D investment continued, with 620 million / 93 million yuan invested in R & D in 2020 with 2021Q1, which was 12.95% higher than that of the same period last year. In 2020, the sales expenses of 2021Q1 Company were + 74.30% and 50.60% compared with the same period last year, which was mainly due to the increase in the company's marketing efforts, the salary of employees and the cost of marketing; the management expenses were mainly due to the increase in employees' salaries compared with the same period last year, which was + 174.99% and 12.64% respectively. The financial expenses were 213 million yuan (- 6.5577 million yuan in the same period in 2019) /-5 million yuan in the same period of 2020Q1 (7 million yuan in the same period of 2019), mainly due to the increase in exchange losses caused by changes in the exchange rate of foreign currencies.
Risk factors: policy regulatory risk, raw material price fluctuation risk, new product research and development failure risk.