Gloria (002821)
Event overview
The company announced the first quarterly report of 2022: the operating income was 2.062 billion yuan, a year-on-year increase of 165.28%; the net profit attributable to the parent was 499 million yuan, a year-on-year increase of 223.59%; the non-deducted net profit was 486 million yuan, a year-on-year increase of 275.76%.
Analysis and judgment:
The performance growth was in line with market expectations, and the two-round strategy of “small molecule + emerging business” continued to advance
In Q1 2022, the company achieved operating income of 2.062 billion yuan, a year-on-year increase of 165.28%. The performance growth was in line with market expectations and continued the trend of rapid growth. Benefiting from the continuous advancement of the company’s “small molecule + emerging business” double-round strategy, the company’s 2022Q1 small molecule business revenue increased by 165.9% year-on-year, and emerging business (chemical macromolecules, biological macromolecules, preparations, clinical CRO, etc.) An increase of 157.4%, driving the company’s overall performance to continue its rapid growth. Looking forward to the future, with the continuous advancement of the two-wheel strategy of “small molecule + emerging business” and the continuous improvement of new production capacity, customer coverage and pipeline breadth and depth, we judge that the company will continue to show rapid growth in the next few years.
(1) The small molecule business continues to cash out at a high speed: in 2022Q1, the operating income of the small molecule business increased by 165.9% year-on-year. We judge that it will benefit from the high-speed cash out of large orders and the continuous deepening of other customers and businesses. Considering the large-scale orders in hand in early 2022 exceeding 8 billion yuan, the continuous deepening of large customers and long-tail customers, and the accelerated release of superimposed small molecule production capacity (Note: The small molecule production capacity at the end of March 2022 is 5,000 cubic meters, and it is expected to reach 6,700 cubic meters by the end of 2022. ), we judge that the small molecule business will continue the rapid growth trend in 2022Q1 in 2022.
(2) Emerging business has gradually become the core driving force of the company’s performance: the operating income of the company’s emerging business has increased by 157.4% year-on-year, of which the growth rate of chemical macromolecules, biological macromolecules, preparations, and clinical CRO revenue has exceeded 100%. Looking forward to the future, with the continuous deepening of the company’s new business layout, the company’s new business will continue to show ultra-high growth and gradually contribute to the core performance driving force.
Profitability shows an upward trend, and the expense ratio slightly decreases due to the effect of scale
(1) Profitability is on the rise: 2022Q1 gross profit margin and net profit margin are 45.24% and 24.22% respectively, up 2.37pct and 4.36pct year-on-year. We judge that benefit from the high profitability of related large orders and the increase in profitability under the effect of scale .
(2) The expense ratio has slightly decreased due to the effect of scale: the company’s 2022Q1 sales expense ratio was 1.00%, a year-on-year decrease of 1.46pct, the management expense ratio was 7.91%, a year-on-year decrease of 4.78pct, and the R&D expense ratio was 6.35%, a year-on-year decrease of 4.39pct , we judge that it is mainly affected by scale effects such as rapid revenue growth driven by related large orders.
Performance forecast and investment advice
As a leading small molecule CDMO supplier in China, the company will continue to develop the integrated service capabilities of “intermediates + API + preparations” for small molecules in the future. In addition, it will continue to strengthen its layout in the fields of synthetic macromolecules and biological macromolecules, so as to increase the company’s medium and long-term performance. Escort. Maintain the previous profit forecast, that is, the operating income in 22-24 is 125.93/126.77/13.084 billion yuan, and the EPS is 11.30/11.60/11.77 yuan, corresponding to the closing price of 292.50 yuan/share on April 20, 2022, and the PE is 25.89/25.22 /24.85 times, maintain “buy” rating.
risk warning
Risk of loss of core technical backbones and management, risk of intensified competition, risk of loss of core technical personnel, risk of exchange rate fluctuations, impact of the new coronavirus epidemic on domestic and foreign business expansion, lower-than-expected execution of new crown orders, Shanghai Asymchem’s capital increase has not been completed Uncertainty.