Antu Bio (603658) Tracking the First Quarterly Report: Performance in line with expectations

Antu Bio (603658) Tracking the First Quarterly Report: Performance in line with expectations

1.

Event: The company released the 2019 first quarter report.

Revenue in the first quarter of 20195.

48 ppm, an increase of 31 in ten years.

85%; net profit attributable to mothers1.

21 ppm, an increase of 26 in ten years.

10%; net profit deducted from non-attributed mothers1.

180,000 yuan, an increase of 30 in ten years.

14%; realized earnings per share of 0.

29 yuan.

  In terms of financial indicators, selling expenses1.

1.7 billion, an increase of 34 in ten years.

92%; administrative expenses 2926.

09 million yuan, an increase of 45 years.

60%, mainly due to wages, depreciation and freight costs increased; financial expenses 255.

220,000 yuan, an increase of 64 in ten years.

97%, mainly due to the increase in long-term bank borrowings and the impact of restructuring exchange losses; R & D expenses were 6,420.

640,000 yuan, an increase of 33 in ten years.

90%, mainly due to the company’s expansion of research and development of chemiluminescence, mass spectrometry detection and other products; end-sale funds of 2110.

50,000 yuan, a decrease of 39 from the beginning of the period.

09%, mainly due to the decrease in the amount of funds received from the advancement of income recognized by biochemical instruments; net operating cash flow1.

09 million yuan, reduced by 3 every year.

64%.

  2.

Our Analysis and Judgment (I) The performance has maintained rapid growth. The cost control during the period benefited from the rapid growth of the core business chemiluminescence, and the company’s overall performance maintained a rapid growth rate.

2019Q1 company achieved revenue 5.

4.8 billion (+31.

85%), net profit attributable to mother 1.

2.1 billion (+26.

10%), deducting non-attributed net profit1.

180,000 yuan (+30.

14%).

The core business chemiluminescence report continued its high growth trend, driving the company’s performance to maintain a growth rate of more than 30% at a high base in the first quarter of 2018.

The growth rate of non-deduction is higher than the growth rate of the parent’s net profit, mainly due to a decrease in investment income by 35 compared with the same period of the previous year.

34%.

  Costs were well controlled during the period.

Expenses during the Q1 2019 are 38.

80%, basically the same as the same period last year, during which the cost control was good.The selling expense ratio is 21.

27% (+0.

48pp), management expense ratio 5.

34% (+0.

50pp), mainly due to the increase in wages, depreciation and freight costs; financial expense ratio is 0.

47% (+0.

09pp), mainly due to the increase in bank borrowings and the impact of merger exchange gains and losses; R & D expense ratio 11.

72% (+0.

18pp), mainly due to the company’s expansion of research and development of chemiluminescence, mass detection and other products.

  Benefiting from the increase in the proportion of high gross profit chemiluminescence reagents, the gross profit margin increased slightly.

2019Q1 gross profit margin was 65.

06%, an annual increase of 0.

40pp, we think it is mainly due to the increase in the proportion of high-margin chemiluminescence reagents.

  (2) Chemiluminescence maintained rapid growth, and other business segments also progressed smoothly.

  In terms of chemiluminescence, (1) 200-speed volume: 2019Q1 company’s new installed capacity of 200+ units, is expected to gradually increase the installed capacity of 1000+ units, the installed capacity of tertiary hospitals accounted for nearly 40%, supporting reagent revenue exceeded the growth rate of 45% +, and continued to maintain high speedGrowth trend.

  (2) 100-speed sample: The 100-speed chemiluminescence instrument was approved in early 19, which is conducive to driving the mass market in the grassroots market.

  In terms of biochemical testing, Shengshi Junhui and Biotherm performed well. Among them, Shengshijunhui’s biochemical analyzer business is expected to achieve revenue of 60 million yuan, and Biotherm biochemical reagents are expected to achieve revenue of 15 million yuan.

  In terms of microbiological testing, it is expected to continue the growth rate of 15% -20%. Among them, the Autof ms1000 mass spectrometry detection system has now formed sales, further enhancing the company’s competitiveness.

  In terms of assembly lines, the Autolas A-1 assembly line is the first domestically produced automatic biochemical immunoassay assembly line in the true sense. The first installation has been completed, with 20北京养生会所 planned installations in 19 years and more than 40 orders signed.

We believe that after the assembly line confirms the sales, it can drive the volume of biochemical immune products in the short term, and can lock in the supply of supporting reagent products to customers in the medium and long term. At the same time, it can increase customer reliance and promote its replacement of more product items, thereby increasing performance.

  In addition, the agency’s joint respiratory inspection products still achieved 20% + growth rate in the high base of 2018Q1.

  (3) R & D investment continued to increase, and new products developed steadily promoted the company’s obvious competitive advantage in research and development.

Mainly reflected in: (1) R & D expansion continued to grow.

In 2019Q1, the company invested 6420 in research and development.

640,000 yuan, an increase of 33 in ten years.

90%, accounting for an increase to 11.

72%.

It has been in the leading position among domestic IVD companies.

(2) The research and development products are advancing steadily.

In terms of instruments, the company’s self-developed magnetic powder chemiluminescence 200-speed instruments A2000 Plus and A2000 have successfully captured the market. The 100-speed chemiluminescence instrument was approved in early 19th, which is helpful to the mass market. The 600-speed instrument is under research.It is expected to be approved for listing in 2020.

At the same time, the self-developed microbial microorganism Autof ms1000 was approved at the end of April.

In terms of reagents, chemiluminescence reagents are planned to expand to 150 after 5 years.

(3) The R & D platform technology is powerful.

The company has established an immunoassay reagent development platform, a biochemical test reagent development platform, a microbiological test reagent development platform, an antigen and antibody development platform and an instrument development platform. It has a nationally recognized enterprise technology center, an immunological detection automation national and local joint engineering laboratory, Henan Province.In vitro diagnostic reagent engineering research center and Henan immune diagnostic reagent engineering technology research center have formed a sound scientific research and development system.

  3.

Investment suggestion The company’s first-quarter performance in 2019 is in line with expectations. The core business of magnetic particle particles chemiluminescence has maintained rapid growth. In the biochemical business, Shengshi Junhui and Biotec have been operating well, the growth rate of the microbial business is stable, and the company has formed immunity + biochemistry + microorganisms.Three strategic product lines, we are optimistic about the company’s future development prospects.

First of all, we are optimistic that the core business of magnetic particle chemiluminescence will continue to grow rapidly.

The company has independently developed chemiluminescence instruments A2000 and A2000 Plus, and has a variety of supporting reagents.

At the same time, the 100-speed meter was approved in early 19th, which is the basis for the company to enter the grass-roots market segmentation. Vertically, 600-speed instruments are under development. It is expected to be approved for listing in 2020, which will help the company develop in the high-end, low-end markets.

  In fact, we are optimistic about the development prospects of the company’s assembly line business. In the short term, it can drive the volume of biochemical immunoreagent products. In the long term, it can lock in the supply of supporting reagent products to customers. At the same time, it can enhance customer stickiness and promote its replacement of more product projects.Thirdly, the Autof ms1000 mass spectrometry detection system has been approved in the report batch of microbial detection products, which will promote the rapid development of the business.

  At the same time, the company increased its capital to Mobidiag, actively improved and strengthened its product layout in the field of molecular diagnostics, and further enhanced the company’s competitiveness.

Finally, the company’s R & D investment has maintained a high level for many years, and the rich variety of R & D products has helped the company’s long-term sustainable development.

We are optimistic about the company’s future performance to maintain steady growth, and predict that the net profit attributable to mothers will be 7 in 2019-2021.

21/9.

34/11.

990,000 yuan, corresponding to EPS 1.

72/2.

22/2.

86 yuan, corresponding PE is 38/29/23 times.

Maintain the “Recommended” level.

  4.

Risks prompt increased competition in the industry; risk of loss of core technical staff; capacity expansion is less than expected.