On February 11, Porton Pharma Solutions Ltd(300363) (300363, SZ) announced that recently, the company received from multinational pharmaceutical company Pfizer Inc. For the new batch of purchase orders of Pfizer Ireland pharmaceuticals (hereinafter referred to as Pfizer), the company will provide contract customized R & D and production (cdmo) services. As of the disclosure date of the announcement, the total amount of newly obtained orders was 681 million US dollars (about 4.2 billion yuan), more than 50% of the audited operating revenue of the company in the latest fiscal year.
For this order, Porton Pharma Solutions Ltd(300363) further disclosed that the order took effect from the date of receipt by the company, and the order has taken effect at present; In addition, Porton Pharma Solutions Ltd(300363) also said that the execution of the order is expected to have a positive impact on the company’s operating revenue and operating profit in 2022. The company will recognize revenue in the corresponding accounting period according to the execution of the order and the revenue recognition principle. At the same time, the company will continue to disclose the implementation of orders in regular reports in accordance with relevant regulations.
In addition, according to the introduction, the most recent one {363}, The company’s sales to Pfizer are as follows (due to the characteristics of cdmo industry, the products of the same end customer may be directly sold to the customer itself and its subsidiaries or its designated suppliers. In order to truly and accurately reflect the essence of business, the following revenue to customers is business caliber, which may be different from the financial accounting caliber): the revenue in 2019 is 58.46 million yuan, Accounting for 3.77% of the current year’s operating revenue; In 2020, the revenue was 103.46 million yuan, accounting for 4.99% of the operating revenue of the current year; The revenue from January to September 2021 was 151.33 million yuan, accounting for 7.46% of the current operating revenue.
According to the performance pre increase announcement previously released by Porton Pharma Solutions Ltd(300363) , the company expects to achieve an operating revenue of 3.004 billion yuan ~ 3.108 billion yuan in 2021. Therefore, this single order for cooperation with Pfizer significantly exceeded the operating revenue of last year.
In China’s cdmo industry, similar high orders are not unprecedented. On November 16 and November 28 last year, Asymchem Laboratories (Tianjin) Co.Ltd(002821) (002821, SZ) announced that it had signed two major contracts with “a large pharmaceutical company”, with a total transaction amount of up to 5.778 billion yuan, which was even close to twice the total revenue of Asymchem Laboratories (Tianjin) Co.Ltd(002821) in 2020. The products involved in the above “a large pharmaceutical company” and orders were also widely regarded as Pfizer and its covid-19 specific drugs in the industry.
However, whether it is Porton Pharma Solutions Ltd(300363) or Asymchem Laboratories (Tianjin) Co.Ltd(002821) , its recent performance in the secondary market is not ideal. Entering the annual report forecast season, it is not uncommon for cdmo industry to make rapid progress and share prices to fall one after another. Yaoming Biology (2269, HK) disclosed that it is expected that the company’s profits and profits attributable to equity shareholders of the company will increase by more than 105% and 98% year-on-year respectively in 2021. Asymchem Laboratories (Tianjin) Co.Ltd(002821) the performance forecast released on January 16 shows that the company expects the annual revenue of 4.505 billion yuan to 4.662 billion yuan, a year-on-year increase of 43% ~ 48%; The net profit was 1.039.8 billion yuan to 1.075.9 billion yuan, with a year-on-year increase of 44% ~ 49%.
However, the market did not buy it. Even excluding the impact of the short-term bad event that Yaoming biological was included in the “unconfirmed list” (UVL) in the United States, its share price has fallen all the way from the high of HK $148 / share in July last year to almost halved; In the 24 trading days since this year, the share price of Asymchem Laboratories (Tianjin) Co.Ltd(002821) has also fallen 39.74%.
