On February 15, Wuxi Apptec Co.Ltd(603259) (603259. SH) released the performance express. In 2021, the operating revenue was 22.9 billion yuan, a year-on-year increase of 38%; The net profit attributable to the parent company was 5.1 billion yuan, a year-on-year increase of more than 70%.
accounts receivable and goodwill fly with performance
At present Wuxi Apptec Co.Ltd(603259) has five business segments: chemical business (Wuxi Chemistry), testing business (Wuxi testing), biology business (Wuxi Biology), cell and gene therapy ctdmo business (Wuxi ATU) and China new drug research and Development Service Department (Wuxi ddsu).
Of the revenue of nearly 23 billion yuan from to Wuxi Apptec Co.Ltd(603259) in 2021, 60% came from chemical business. the revenue of chemical business exceeded 14 billion yuan in 2021, and reached 9.6 billion yuan in the same period last year, with a year-on-year increase of about 50%. Among them, the service revenue in the phase of small molecule drug discovery increased by more than 40% year-on-year; The service revenue in the process R & D and production stages increased by about 50% year-on-year.
According to the Research Report of securities companies, in the chemical business, 1666 new drug molecules were involved in the small molecule clinical stage and commercialization stage (cdmo) of the company in 2021 (42 commercialization, 49 clinical phase III, 257 clinical phase II, 1318 clinical phase I and pre clinical). The number of customers and molecules served by oligonucleotide and polypeptide drugs crdmo increased by 128% and 150% year-on-year respectively. The number of preparation commercial production projects has increased to 4, and another 8 preparation projects are in clinical phase III or NDA application stage.
In 2021, the other four major businesses, including testing business, biology business, cell and gene therapy and China’s new drug R & D service, brought revenue of 4.5 billion yuan, 2 billion yuan, 1 billion yuan and 1.25 billion yuan respectively.
chemical business has supported half of Wuxi Apptec Co.Ltd(603259) , and cell and gene therapy business will also become a sharp weapon. Wuxi Apptec Co.Ltd(603259) said that cell and gene therapy will usher in a turning year of business development in 2022, and the revenue in this sector is expected to exceed the growth rate of the industry. Wuxi Apptec Co.Ltd(603259) has established two cell and gene therapy bases in China, one in Huishan, Wuxi and the other in Shanghai Lingang Holdings Co.Ltd(600848) . The R & D and production base of Shanghai Lingang Holdings Co.Ltd(600848) is under construction, with a design capacity of 15300 square meters. After completion, it can provide customized services from strain library building, process development, research level plasmid production to GMP level plasmid production.
In the past, the net profit of the company generally showed an upward trend. The net profit attributable to the parent company in 2019 and 2020 was about 1.85 billion yuan and 3 billion yuan. The performance express showed that the net profit attributable to the parent company in 2021 exceeded the sum of the net profits in the past two years.
Wuxi Apptec Co.Ltd(603259) net profit attributable to the parent, picture source: choice financial terminal
behind the sharp rise in performance, Wuxi Apptec Co.Ltd(603259) accounts receivable also began to increase . In 2018, it was only 2 billion yuan, accounts receivable in the first three quarters of 2021 increased to 4.5 billion yuan , accounting for 27% of the current revenue. at the same time, the scale of the company’s goodwill also increased rapidly. In 2018, it was only 1.14 billion yuan, goodwill in the first three quarters of 2021 has increased to 1.94 billion yuan, an increase of 70%.
stock price cycle
Wuxi Apptec Co.Ltd(603259) landed in A-Shares on May 8, 2018, and the highest price on that day was only 31 yuan / share. It soared to 135 yuan / share (no resumption of rights) on May 30, 2018, and the share price soared three times in less than a month. Then the share price fluctuated downward, and the share price fell to 63 yuan on August 7, 2019.
Wuxi Apptec Co.Ltd(603259) net profit attributable to the parent, picture source: choice financial terminal
The “up and down” of Wuxi Apptec Co.Ltd(603259) share price has been repeated since 2019. Since September 2020, its share price has been rising all the way, and the share price in that month is still less than 100 yuan / share. By February 18, 2021, the share price has risen to 188 yuan / share, and then fluctuated down to 126 yuan / share on March 23 of that year. In mid July 2021, the company’s share price rose again to a record high of 172 yuan / share.
Then the share price began to fluctuate and fall. As of February 11, 2022, the share price fell to the lowest point, reaching 81 yuan / share, which has fallen more than 50% from the highest point of the share price in 2021.
In recent days, especially after Wuxi Apptec Co.Ltd(603259) released the performance express, the company’s share price rebounded, and the closing price rose to 98.4 yuan / share as of February 17. The share price rose more than 18% in the four trading days of .
Over the past four months, many securities companies have released research reports, saying that the company’s target price can reach up to 220 yuan / share. On February 17, 2022, Puyin international securities released research reports, saying that its target price can reach 198 yuan / share.
Wuxi Apptec Co.Ltd(603259) target price
Statistical drawing: Yin Jingfei; Data source: choice financial terminal
It is worth noting that in 2021, the share price was rising, and the shareholders of the company wantonly reduced their holdings.
From May 14 to June 7, 2021, the company’s shareholder Shanghai Yingyi investment center illegally reduced about 17.25 million shares, the reduction price range was 143 yuan / share to 177 yuan / share, and the total reduction amount was about 2.9 billion yuan. Subsequently, Shanghai Yingyi investment center was filed for investigation by the CSRC on June 16, 2021 due to “suspected illegal information disclosure”.
Subsequently, in October 2021, Wuxi Apptec Co.Ltd(603259) disclosed that its directors and senior managers had reduced 300000 shares in total and cashed out 44.66 million yuan in total.
Since its listing in May 2018, Wuxi Apptec Co.Ltd(603259) has raised a total of 8.78 billion yuan through IPO and private placement, including 2.25 billion yuan from IPO and 6.5 billion yuan from additional issuance in September 2020. Since its listing, the company’s dividend amount has been 2.1 billion yuan.
There are many retail investors. By the end of the third quarter of 2021, the number of shareholders of the company had reached 187000. Can Wuxi Apptec Co.Ltd(603259) share price return to its peak in the praise of performance support and brokerage Research Report? In the “roller coaster” cycle of stock prices again and again, who is the biggest winner?
