\u3000\u3000 Shanghai Medicilon Inc(688202) (688202)
Event overview
The company issued the plan for issuing A-Shares to specific objects in 2022, which plans to issue shares of no more than 30% of the total share capital (i.e. no more than 18623864 shares) to no more than 35 (including 35) specific objects, and the total amount of funds raised is no more than 2.160 billion yuan; There are mainly three raised and invested projects, Shanghai Medicilon Inc(688202) North Shanghai biomedical R & D and innovation Shenzhen New Industries Biomedical Engineering Co.Ltd(300832) base project, laboratory expansion project of drug discovery and pharmaceutical research and application platform, and supplementary working capital. This issue is issued through inquiry. The issue price of this issue is no less than 80% of the average trading price of the company's shares 20 trading days before the pricing benchmark date, and the pricing benchmark date is the first day of the issuance period. Analysis and judgment:
It is proposed to raise an investment of no more than 2.160 billion yuan to accelerate the capacity-building of drug discovery business
The company's proposed additional issuance, echoing the strategic framework agreement signed with Baoshan District on January 6, 2022 Shanghai Medicilon Inc(688202) , will accelerate the construction of the company's drug discovery laboratory capacity. It is proposed to raise a total of no more than 2.160 billion yuan, of which 1.57 billion yuan will be used to build a new laboratory base in Baoshan and 190 million yuan will be used to expand the laboratory capacity in Nanhui, which will significantly increase the area of the company's drug discovery laboratory, improve the conditions of experimental equipment and expand the scale of research and development service personnel, so as to meet the needs of future business development in the next 5-10 years. Considering that the new orders signed by the company in 2021 increased by about 88% year-on-year, continuing the rapid growth in recent years, looking forward to the next 3-5 years, the company will continue to show ultra-high growth on the basis of continuous deep cultivation of the Chinese market and continuous development of overseas markets.
The one-stop preclinical cro market leader took the lead in benefiting from the high vision of China's cro industry
The company is one of the cros in China that can provide preclinical integrated and one-stop services. It provides preclinical new drug R & D services for global multinational pharmaceutical enterprises, large Chinese pharmaceutical enterprises and biotech companies.
In recent years, especially since the verification of 722 clinical data, China's innovative drug R & D market has shown a vigorous development trend. Benefiting from the positive changes in the industry, the company's performance has shown rapid growth since 2014. Looking forward to the next 3-5 years, China's cro industry will continue to be in a high outlook in the industry. As one of the market leaders in China's preclinical one-stop cro segment, with the improvement of technical capacity and the production of new production capacity, we judge that the company will continue to benefit from the high-profile atmosphere of the industry and its performance will show rapid growth.
Investment advice
As a comprehensive and one-stop preclinical cro service provider in China, the company benefits from the high prospect of preclinical cro demand, the improvement of technical capacity and the production of new capacity. We judge that the company's performance will show rapid growth in the next 3-5 years. Considering the strong and rapid growth of drug discovery and preclinical research business orders and operating revenue, maintain the early profit forecast, that is, it is expected that the operating revenue from 2021 to 2023 will be RMB 1.185/2.014/3.021 billion respectively, EPS will be RMB 4.59/7.88/11.93 respectively, corresponding to the closing price of RMB 328.41/share on February 10, 2022, and PE will be 71.48/41.66/27.52 times respectively, maintaining the "buy" rating.
Risk tips
The company's order demand is lower than expected, the investment in the stock investment project is lower than expected, the core technology backbone and management risk of loss, the risk of intensified competition, and the impact of New Coronavirus epidemic.
