\u3000\u3000 Wuxi Apptec Co.Ltd(603259) (603259)
Event: the company released the 2021 performance express. In 2021, the company achieved a total operating revenue of 22.902 billion yuan, a year-on-year increase of 38.5%; The net profit attributable to the parent company was 5.097 billion yuan, a year-on-year increase of 72.19%; The non net profit deducted was 4.064 billion yuan, a year-on-year increase of 70.38%; After adjustment, the net profit attributable to the parent company was 5.131 billion yuan, a year-on-year increase of 41.08%. The performance is in line with expectations.
Comments:
Crdmo (contract research, development and production organization) business, with strong order demand, promoted the accelerated growth of the company’s annual sales revenue in 2021. In terms of business, in 2021, the company’s chemical business, testing business, biological business, cell and gene therapy ctdmo business and China 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. In the chemical business, the service revenue of small molecule drug discovery (R) increased by about 43.24% year-on-year; The service revenue of process R & D and production (D & M) increased by about 49.94% year-on-year. In the testing business, the revenue of laboratory analysis and testing services increased by about 38.93% year-on-year. If excluding drug analysis and testing services other than device testing, it increased strongly by about 52.12% year-on-year; The revenue of clinical cro and SMO increased by about 36.20% year-on-year.
Quarterly, Q4 performance maintained rapid growth. It is estimated that Q4 will achieve a total operating revenue of 6.381 billion yuan in 2021, with a year-on-year increase of 35%; The net profit attributable to the parent company was 1.535 billion yuan, a year-on-year increase of 159%. In terms of business, Q4 chemical business, testing business, biology business, cell and gene therapy ctdmo business and China new drug R & D service achieved revenue of 4.01 billion yuan, 1.19 billion yuan, 561 million yuan, 290 million yuan and 319 million yuan respectively.
Investment suggestion: the company is the world’s leading CXO enterprise, constantly optimizing and exploring cross platform business synergy, accelerating the pace of globalization, continuously strengthening the company’s unique integrated crdmo (contract research, development and production) business model, and providing real one-stop services to meet customers’ service needs from drug discovery, development to production. We expect the company’s earnings per share in 2021 / 2022 to be 1.72/2.49 yuan respectively, and the current share price corresponding to PE is 54 / 38 times respectively, maintaining the “recommended” rating of the company.
Risk tips: industry competition intensifies, R & D investment of upstream pharmaceutical enterprises decreases significantly, capacity expansion is less than expected, talent team construction is less than expected, drug R & D failure risk, loss of key customers, industry policy risk, etc.
