\u3000\u3000 Shanghai Haoyuan Chemexpress Co.Ltd(688131) (688131)
Event: the company plans to acquire 100% equity of drug source drugs by issuing shares and paying cash. At the same time, the company plans to issue shares to Shanghai Anshu information technology, the controlling shareholder of the company, to raise supporting funds of no more than 50 million yuan.
Founded in 2003, drug source drugs are deeply engaged in the field of CMC, providing one-stop pharmaceutical care for the R & D, registration and production of APIs and preparations for new drug developers, and has rich successful experience in pharmaceutical research and registration in China and the United States. Customers cover leading pharmaceutical companies and biotechnology companies from the United States, Canada, Europe, Israel and China. In 2021, in the first ind of 243 class 1 innovative drugs accepted by CDE, drug sources participated in pharmaceutical cooperation of 18 varieties, accounting for 7.4%.
The business entities of drug source are divided into R & D center in Shanghai and production center in Qidong. Shanghai Pharmaceutical Research and development station is responsible for providing pharmaceutical services; Drug source Qidong is a GMP preparation factory with a drug production license. It passed the EU QP quality audit in March 2021, provided registration batch and clinical batch sample production services, and undertook MAH entrusted commercial production, which met the requirements of Chinese, American and European regulations. In December 2021, it successfully accepted the drug registration and GMP dynamic inspection of the State Food and Drug Administration and Jiangsu Provincial Bureau.
The acquisition of drug source drugs will further increase the company’s commercial production capacity and greatly improve the service capacity of the company’s back-end business. The company’s back-end intermediate API cdmo business has maintained high order growth since last year, and the growth rate of back-end business revenue nearly doubled in the first half of last year. In the case of order explosion, the company still mainly relies on outsourcing capacity, which affects the company’s order receiving capacity on the one hand, and on the other hand, outsourcing capacity has a certain negative impact on the gross profit margin of back-end business. After the acquisition of drug sources, the company’s GMP production capacity will increase significantly, which is conducive to the volume of the company’s back-end business and the improvement of the gross profit margin of the sector.
Profit forecast and rating: it is estimated that the net profit attributable to the parent company from 2021 to 2023 will be 192 / 275 / 373 million yuan, with a year-on-year increase of 49.2% / 43.4% / 35.6%. The market share of the company’s front-end business has gradually increased, and the back-end business capacity has been continuously strengthened. They are expected to grow rapidly and maintain the “buy” rating.
Risk tip: the industry competition intensifies, the risk of brain drain, and the capacity expansion is less than expected
