\u3000\u3000 Suzhou Nanomicro Technology Co.Ltd(688690) (688690)
Event summary
The company issued an equity incentive announcement on January 29, 2022, which plans to grant 3 million shares to the incentive object, accounting for 0.75% of the total share capital of the company, and the initial grant price is 35 yuan / share. The corresponding performance assessment year of this incentive plan is 2022-2024. The performance assessment target is that the operating revenue in 2022 is not less than 610 million yuan, the cumulative operating revenue in 2022-2023 is not less than 1.46 billion yuan, and the cumulative operating revenue in 2022-2024 is not less than 2.64 billion yuan.
Key investment points
The equity incentive target shows confidence, and the performance certainty is significantly improved
The performance goal of equity incentive fully demonstrates the firm confidence of the company in future development. Assuming that the company’s revenue in 2021 is 430 million yuan, according to the performance goal of equity incentive, the compound growth rate from 2022 to 2024 will not be less than 40%. The equity incentive plan granted 2.4 million shares for the first time, with a total number of 136 people, including 8 company executives and 128 backbone personnel, accounting for 24.91% of the number of employees in the company. It deeply binds the core employees and lays a solid foundation for the long-term development of the company.
The performance growth exceeded expectations, and the antibody drug filler project increased rapidly
The company’s performance in 2021 achieved a higher than expected growth. The production bottleneck of antibody drugs mainly comes from the downstream separation and purification link, and the cost of downstream separation and purification link accounts for about 65% of the total cost. Relying on its complete product line and large-scale production capacity, the company has increased the number of antibody drug projects in various stages, driving a significant increase in the sales of affinity chromatography, ion exchange chromatography filler and other products. According to the company’s performance forecast in 2021, it is expected to achieve a revenue of 420-450 million yuan in 2021, with a year-on-year increase of 105% – 120%; The net profit attributable to the parent company was 168-185 million yuan, with a year-on-year increase of 131% – 155%.
Continue to make efforts in the research and development of underlying technologies and accelerate the iterative upgrading of products
The company strengthens its core competitive advantage by developing new products and improving the performance of existing products. In 2018, the company launched proteinA affinity chromatography medium, continuously optimized the technology to obtain a new generation of high load proteinA, increased the load on the basis of high-pressure purification, achieved breakthroughs in core technologies such as soft and hard glue matrix and ligand, and completed most batch production of pilot release. The business income CAGR of proteinA from 2018 to 2020 was 458.63%; At the same time, it breaks through the traditional limit of 15cm column height and can be used for industrial continuous production.
Cooperation with key customers continued to deepen and capacity expansion was steadily promoted
The company has established good cooperative relations with Jiangsu Hengrui Medicine Co.Ltd(600276) , Shanghai Fosun Pharmaceutical (Group) Co.Ltd(600196) , Chengdu Beite pharmaceutical and other well-known pharmaceutical enterprises. Based on the high brand effect and high customer stickiness of the chromatographic filler industry, on the one hand, with the backward development stage of the customer’s project, it is expected to achieve a significant increase in the amount of filler; On the other hand, through cooperation with well-known pharmaceutical enterprises, improve brand awareness and gradually improve the market share. The company actively promotes the construction of production capacity, leases a new building with a construction area of 5599 ㎡ in Suzhou Industrial Park, and constructs a new plant with a total construction area of 7400 ㎡ in the north of the existing Changshu nano micro plant, so as to realize the rapid supplement of production capacity.
Profit forecast
Due to the rapid volume of the company’s fillers in antibody, recombinant protein and other fields and the capacity release of Changshu base, we adjusted the operating revenue from 2021 to 2023 to 430 / 698 / 987 million yuan (the original value was 390 / 603 / 896 million yuan); The net profit attributable to the parent company was 168 / 279 / 402 million yuan (the original value was 149 / 237 / 372 million yuan), maintaining the overweight rating.
Risk warning: the launch of new products is less than the expected risk; The risk that customer expansion is less than expected; Risk of purchasing some raw materials from a single supplier; Risk of medical policy change; Product quality control risk
