\u3000\u3000 Asymchem Laboratories (Tianjin) Co.Ltd(002821) (002821)
Event: on February 20, 2022, 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, Jilin Asymchem Laboratories (Tianjin) Co.Ltd(002821) Pharmaceutical Chemistry Co., Ltd., a wholly-owned subsidiary, signed a new batch of supply contracts for related products with customers. The contract amount is equivalent to about 3.542 billion yuan, The contract supply time is 2022.
Viewpoint:
Heavy contracts have been signed successively, totaling about 9.3 billion yuan. The company’s small molecule cdmo service strength is obvious. On November 16 and November 28, 2021, the company successively signed supply contracts of USD 480 million and RMB 2.72 billion. This time, the company received another large order of RMB 3.542 billion, with a record amount. Most of the company’s revenue is expected to be quickly recognized in 2021, and some of it will be recognized in 2022. The successive signing of heavy contracts shows the high business stickiness of serving customers, and the company’s strength in small molecule cdmo service.
The signing of major contracts can increase revenue and build reputation, which is more conducive to the long-term development of the company. According to the performance forecast released by the company, the expected revenue in 2021 is RMB 4.505-4.662 billion, with a year-on-year increase of 43-48%. The amount of newly signed large orders exceeds 75% of the expected revenue in 2021, which will promote the rapid release of the company’s performance again. The company’s reputation in the field of small molecule cdmo services has been confirmed repeatedly, and has become a world leading one-stop comprehensive service provider for new drug R & D and production of cdmo. Based on the abundant performance income, the company has the ability to accelerate the development of emerging business segments, expand customer groups, expand service coverage, extend the business chain and achieve comprehensive and long-term development.
Production capacity accelerated, technology continued to lead, and the foundation for performance growth was solid. With Tianjin as the center, the company has established a number of small molecule R & D and production bases and biological macromolecule bases in Fuxin, Liaoning, Dunhua, Jilin and Jinshan, Shanghai. According to the disclosure of China Daily, the capacity investment has been increased one after another, and the landing has been accelerating. The large-scale application of continuous reaction technology further improves the reaction efficiency and yield, effectively improves the output value, reduces the cost and increases the efficiency. On February 11, snapdragon, a leading enterprise in continuous flow technology, was acquired. The company’s small molecule cdmo R & D platform further realized global development, accelerated the improvement of integrated production services from clinical to commercialization, from raw materials to cGMP intermediates and API, and contributed to sustained and rapid growth of performance.
Profit forecast and investment rating. Considering the signing of major contracts, we raised our profit forecast again. From 2021 to 2023, the net profit attributable to the parent company was 1.057 billion yuan, 2.516 billion yuan and 2.694 billion yuan respectively, with a year-on-year increase of 46.3%, 138.1% and 7.1% respectively. The corresponding PE was 77X, 32x and 30x respectively, maintaining the “buy” rating.
Risk warning: risk of customer demand change; Market environment uncertainty risk; Exchange rate fluctuation risk.
