\u3000\u3000 Wuxi Apptec Co.Ltd(603259) (603259)
Core view
Event: the company released the performance express of 2021, and achieved an operating revenue of 22.902 billion yuan in 2021, with 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%; Deduct non net profit of RMB 4.064 billion, with a year-on-year increase of 70.38%.
Comments:
The chemical business drives the high growth of annual performance, which is expected to accelerate again in 2022. The chemical business segment continued to build an “integrated, end-to-end” crdmo business, with strong order demand. In 2021, the revenue of chemical business was about 14.087 billion yuan, with a year-on-year increase of about 46.93%, driving the rapid growth of the company’s annual performance. Among them, 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. The company expects that the revenue growth of the chemical business segment in 2022 will nearly double that of 2021.
Testing business and biology business performed well, while other businesses made steady progress. In 2021, the revenue of testing business was 4.525 billion yuan, with a year-on-year increase of about 38.03% (including laboratory analysis and testing business + 38.93% year-on-year and clinical cro & SMO business + 36.20% year-on-year); The revenue of biology business was 1.985 billion yuan, a year-on-year increase of 30.05%. ATU business realized a revenue of 1.026 billion yuan, a year-on-year decrease of about 2.79% (including ATU business in China + 87% year-on-year). Ddsu achieved a revenue of 1.251 billion yuan, a year-on-year increase of about 17.47%.
Profit forecast: it is estimated that from 2021 to 2023, the company’s revenue will be 22.9 billion yuan / 36.81 billion yuan / 43.97 billion yuan respectively, with a year-on-year increase of 38.5% / 60.7% / 19.5% respectively; The net profit attributable to the parent company was 51.0/75.6/9.42 billion yuan respectively, with a year-on-year increase of 103.7% / 47.8% / 21.4% respectively. The current closing price corresponding to PE is 45 / 30 / 24 times respectively. The company is a crdmo leading enterprise with global competitiveness, and the track is still in a high momentum. With the gradual release of new production capacity and the large-scale volume after the promotion of customer pipelines, it is expected to bring sustained growth to the company, cover it for the first time, and give a “buy” rating.
Risk warning: covid-19 epidemic situation intensifies; Customer order execution and market development are not as expected; Decline in industry demand; Industry competition intensifies; Policy risk.
