\u3000\u3000 Wuxi Apptec Co.Ltd(603259) (603259)
Event: on February 15, 2022, the company released the annual performance express for 2021. In 2021, the company achieved a revenue of 22.902 billion yuan, a year-on-year increase of 38.50%; The net profit attributable to the parent company was 5.097 billion yuan, a year-on-year increase of 72.19%; The net profit attributable to the parent company after non deduction was 4.064 billion yuan, a year-on-year increase of 70.38%, and the performance growth was in line with expectations.
The growth of chemical business and testing business is strong, and the performance is high in 2021. The growth is in line with expectations: on the revenue side, the company achieved a revenue of 22.902 billion yuan in 2021, a year-on-year increase of 38.50%. Among them, in 2021, chemical business, testing business, biological business, cell and gene therapy ctdmo business and China’s new drug R & D service achieved revenue of 14.087 billion yuan, 4.525 billion yuan, 1.985 billion yuan, 1.026 billion yuan and 1.251 billion yuan respectively, with a year-on-year increase of 46.93%, 38.03%, 30.05%, – 2.79% and 17.47% respectively. On the profit side, the net profit attributable to the parent company was 5.097 billion yuan, a year-on-year increase of 72.19%; The net profit attributable to the parent company after non deduction was 4.064 billion yuan, a year-on-year increase of 70.38%, and the performance growth was in line with expectations.
By implementing the strategy of “following the molecules”, all businesses are expected to continue to flourish in 2022: the company continues to implement the development strategy of “following the molecules” and continues to build an “integrated, end-to-end” crdmo business. All businesses are expected to continue to develop rapidly in 2022. Among them, according to the company’s announcement, the revenue growth rate of chemical business is expected to double in 2022, and the growth of this business is expected to exceed expectations; The testing business is becoming more and more mature, and the leading position in China such as SMO business is prominent. It has 4500 employees and covers 1000 hospitals. It is expected that the revenue growth in 2022 will continue the growth momentum in recent years; The cell and gene therapy ctdmo business continues to expand globally, and the Shanghai Lingang Holdings Co.Ltd(600848) base (process R & D and commercial production center) and Philadelphia base (improving testing capacity) have been put into operation. It is expected that the revenue growth of this business is expected to exceed that of the industry in 2022; China’s new drug R & D service department is expected to enter the harvest period in 2022. The business pipeline will realize the first product listing application in July 2021. It is expected to gradually enjoy milestones and sales share revenue in 2022.
Investment suggestion: we expect the company to realize net profits of 8.093 billion yuan and 9.926 billion yuan respectively from 2022 to 2023, with a year-on-year increase of 58.8% and 22.7% respectively; Give an investment rating of buy-a.
Risk tips: the growth of order quantity does not meet expectations, the increase of market competition leads to the decline of order price, the prosperity of the industry is less than expected, and the development of overseas epidemic affects the orders of overseas pharmaceutical enterprises.
