\u3000\u3000 Asymchem Laboratories (Tianjin) Co.Ltd(002821) (002821)
Event overview
The company recently signed a merger agreement with snapdragon company and its shareholder representatives and other parties. It plans to acquire the equity held by 49 shareholders of snapdragon company in addition to the equity held by Asymchem Laboratories (Tianjin) Co.Ltd(002821) with its own capital of about US $57.94 million (which can be adjusted according to the future financial performance of snapdragon company). After this acquisition, Asymchem Laboratories (Tianjin) Co.Ltd(002821) will hold 100% equity of snapdragon.
Analysis and judgment:
It is proposed to acquire snapdragon company and cooperate with Boston R & D center to expand overseas biotech and other customers
Snapdragon, founded in Massachusetts in 2014 by two leading figures in the field of continuous flow technology, Tim Jamison (Professor of MIT) and Aaron Beeler (Professor of Chemistry Department of Boston University), is a global leader in continuous reaction technology, Provide route development, design and process optimization services for large pharmaceutical companies and small and medium-sized innovative drug companies in Europe and America. Snapdragon achieved an operating revenue of US $9.2822 million in the first three quarters of 2021, which has exceeded the annual operating revenue of US $7.0679 million in 2020, realizing rapid business growth. Looking forward to the future and after the acquisition, snapdragon will become the company’s overseas R & D platform, further enhance the company’s R & D strength in the field of small molecules (especially continuous production technology), form coordination with Boston R & D center, accelerate the expansion of overseas biotech enterprises and significantly accelerate the development of overseas long tail customers, Add certainty to business growth in the coming years.
Global leader in small molecule cdmo industry, accelerated capital expenditure and strategic emphasis on long tail customers drive the acceleration of corporate performance
The company has been deeply engaged in the field of small molecule cdmo for more than 20 years, and has established a world-class R & D platform with nearly 3000 scientists and engineers. At the same time, the company has upgraded and established four technology platforms since 2020, including process science center, continuous science and technology center, biosynthesis technology R & D center and intelligent manufacturing technology center, which are used for R & D and reserve of various technologies, The continuous improvement of cdmo + service capability supporting Asymchem Laboratories (Tianjin) Co.Ltd(002821) enables the company’s pipeline under research. In the first half of 2021, the company’s small molecule cdmo business achieved an operating revenue of RMB 1.617 billion, with a year-on-year increase of 34.1%, of which commercial business accounted for 51.3% and clinical business accounted for 48.7%. Looking forward to the next three years, considering the order increment brought by continuing to cultivate key customers and accelerating the development of long tail customers, as well as the supply side acceleration brought by the acceleration of superimposed capital expenditure, we generally judge that the company’s performance will realize the trend of accelerated growth.
New business development: diversify business layout and add imagination to the company
On the basis of deep cultivation of small molecule cdmo business, the company has rapidly developed chemical macromolecule business (oligonucleotide, polypeptide, liposome, etc.), preparation, bioengineering and other businesses, and steadily expanded clinical research services, biological macromolecule cdmo and other businesses. Among them, the preparation business and bioengineering fields continue to be small molecule, oligonucleotide, polypeptide Continue to empower and realize collaborative business cooperation in the field of biological macromolecules. In the first half of 2021, the company’s new business realized an operating revenue of 144 million yuan, with a year-on-year increase of 144.62%, including a year-on-year increase of 98.39% in the chemical macromolecule business and 82.72% in the preparation sector. Looking forward to the future, with the continuous layout of synthetic macromolecules, biological macromolecules, clinical cro, biosynthesis and other businesses, the company will realize one-stop service business with small molecule business, realize rapid growth of business and increase the imagination of future performance growth.
Performance forecast and investment suggestions
As China’s leading supplier of small molecule cdmo, the company looks forward to the future and continues to cultivate the integrated service capacity of small molecule “intermediate + API + Preparation”. In addition, the company continues to strengthen the layout in the field of synthetic macromolecules and biological macromolecules, so as to escort the medium and long-term performance growth of the company. Maintain the early-stage profit forecast, that is, the revenue in 21-23 years is 4.620/85.38/10.084 billion yuan, the EPS is 4.02/7.54/8.96 yuan, corresponding to the closing price of 262.12 yuan / share on February 11, 2022, and the PE is 65.14/34.78/29.25 times respectively, maintaining the “buy” rating.
Risk tips
The core technology backbone and management risk of loss, the risk of increased competition, the loss of core technical personnel, the risk of exchange rate fluctuations, the expansion of New Coronavirus’s epidemic affecting China’s external business, and the implementation of COVID-19 orders are lower than expected.
