\u3000\u3000 Asymchem Laboratories (Tianjin) Co.Ltd(002821) (002821)
Event: the company announced that in the process of continuously providing contract customized R & D and production (cdmo) services for a small molecule chemical innovative drug of a pharmaceutical company (hereinafter referred to as the “customer”), Jilin Asymchem Laboratories (Tianjin) Co.Ltd(002821) Pharmaceutical Chemistry Co., Ltd., a wholly-owned subsidiary of the company, recently signed a new batch of supply contracts for related products with the customer, The contract amount is equivalent to about RMB 3.542 billion, and the contract supply time is 2022.
Comments:
Continue to sign major orders, and ensure the high growth of performance in 2022. The company announced on November 17, 2021 that it had obtained orders of USD 481 million (about RMB 3.07 billion), and announced on November 29, 2021 that it had obtained orders of RMB 2.72 billion. Together with the orders obtained this time, the total amount of the three orders is 9.332 billion yuan, and the core supply time is 2022. According to the performance forecast previously released by the company, it is estimated that the annual revenue in 2021 will be 4.505 billion yuan – 4.662 billion yuan, and the total amount of these three orders is 100% – 107% of the annual revenue in 2021. Continued signing of large orders provides guarantee for the high growth of performance in 2022.
The company’s performance maintained rapid growth in 2021. The company predicts that in 2021, the revenue will increase by 43% – 48% year-on-year, of which Q4 revenue will increase by 57% – 62% year-on-year; Excluding the impact of exchange rate, the annual and fourth quarter of 2021 increased by 52% – 57% and 62% – 67% respectively. In 2021, the net profit attributable to the parent company increased by 44% – 49% year-on-year, and the net profit excluding non attributable to the parent company increased by 41% – 46% year-on-year. In terms of business, the small molecule business grew strongly. It is expected that the annual revenue in 2021 will increase by more than 45% year-on-year and Q4 by more than 65% year-on-year. Excluding the impact of exchange rate, the growth ratio will exceed 50% and 70% respectively. At the same time, the company accelerated the development of chemical macromolecules, biological macromolecules, cdmo, preparations, clinical cro and other emerging business segments. In 2021, the revenue of emerging business segments increased by more than 65% year-on-year. Excluding the impact of exchange rate, the annual growth was more than 70%.
Speed up the construction of production capacity to meet the demand of orders. With Tianjin as the center, the company has covered Fuxin, Liaoning, Dunhua, Jilin, Jinshan, Shanghai and other regions, and has established a number of small molecule R & D and production bases and biological macromolecule bases. By the end of the first half of 2021, the volume of the company’s reactor was nearly 3000m3. The company accelerates the construction of small molecule production capacity. According to the construction progress of new plants and workshops in the current base, it is expected to release 1390m3 of production capacity in Tianjin, Dunhua and other areas in the second half of 2021; According to the project schedule of Dunhua and Zhenjiang bases, it is expected to increase the production capacity by 1500m3 in 2022. At the same time, accelerate the capacity expansion of emerging businesses. Set up a chemical macromolecule R & D and production base in the west area of TEDA, and further build the public level capacity of oligonucleotides on the basis of the kilogram capacity built in cooperation with Suzhou Ruibo Institute. At the same time, the bioengineering R & D base will establish the production capacity of catalytic enzymes, medicinal enzymes, recombinant proteins and enzyme preparations from gram level to ton level in line with GMP standards. Improve the cdmo service capacity of ADC drugs in Shanghai Jinshan ADC pilot plant and early commercial production workshop.
Maintain recommended ratings. The company continues to sign large orders, speed up production capacity construction, maintain rapid growth of new and old businesses, and can grow in the future. It is estimated that the company’s earnings per share in 2021 / 2022 will be 4.03/8.23 yuan respectively, and the current share price corresponding to PE will be 76 / 37 times respectively, maintaining the “recommended” rating of the company.
Risk tips: industry competition intensifies, capacity expansion is less than expected, exchange rate fluctuates sharply, brain drain, performance growth is lower than expected, loss of key customers, industry policy risks, etc.
