\u3000\u3000 Asymchem Laboratories (Tianjin) Co.Ltd(002821) (002821)
Event: Asymchem Laboratories (Tianjin) Co.Ltd(002821) announced that 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) through merger 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.
Viewpoint:
Snapdragon was founded 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). It has made many breakthrough contributions in the basic research of continuous reaction, automatic control and equipment design, and has attracted extensive attention all over the world. Through years of layout, snapdragon has successfully applied continuous reaction technology to large-scale commercial production of raw materials, chemical intermediates and APIs, and applied cutting-edge continuous technology to the design of API route and process optimization, so as to make the API production process more green, environmental friendly, efficient, economical and safe, It has been widely recognized by large innovative drug companies and small and medium-sized innovative drug companies in Europe and America.
Snapdragon continuous reaction technology will further enhance the company’s R & D strength of small molecule cdmo. Snapdragon is committed to the research, development and industrial application of disruptive technology in the production of innovative drug APIs. With cutting-edge technology in the field of continuous reaction, snapdragon has great potential for drug synthesis, production and application. In August 2020, the company subscribed 18.18% shares of snapdragon with us $7 million to carry out comprehensive strategic cooperation in continuous reaction technology development and business collaboration, and deepen the research of continuous reaction technology and the application expansion in API production. After this expansion of M & A, snapdragon will become another overseas R & D platform of the company and consolidate the company’s leading position in the field of small molecule cdmo.
Strong alliance, active drainage and continuous improvement of one-stop cdmo service capacity. Snapdragon has solid technology and professional services in the early process development. Its close partnership with multinational pharmaceutical companies and biotech companies will have a significant synergy with the cdmo services in the later stage and commercialization stage of the company, assist the company in the development of growth business, strengthen the ability to provide customers with one-stop solutions, and further consolidate the company’s leading advantage in the global cdmo market.
M & A helps to expand the company’s overseas business layout and contribute to the development of globalization. Snapdragon has experience in providing route development, design and process optimization services for continuous reaction production of innovative drug APIs to large pharmaceutical companies and small and medium-sized innovative drug companies in Europe and America. Its customer resources will enrich the company’s overseas business layout; At the same time, it cooperates and resonates with the company’s Boston R & D center, effectively shortens the customer service radius of overseas biotech, significantly improves the coverage of large pharmaceutical companies and biotech, and is of great significance to the implementation of the company’s global development strategy.
Profit forecast and investment rating. Based on the continuous landing of the company’s production capacity, we raised the profit forecast again. It is estimated that the net profit attributable to the parent company from 2021 to 2023 will be 1.057 billion yuan, 2.005 billion yuan and 2.329 billion yuan respectively, with a year-on-year increase of 46.3%, 89.8% and 16.2% respectively, and the corresponding PE will be 66x, 35x and 30x respectively, maintaining the “buy” rating.
Risk warning: risk of customer demand change; Market environment uncertainty risk; Exchange rate fluctuation risk.
