\u3000\u3000 Asymchem Laboratories (Tianjin) Co.Ltd(002821) (002821)
Events
The company signed a major contract of 3.542 billion small molecule innovative drug cdmo. 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, the company recently obtained a new order of about 3.542 billion yuan, and the supply cycle is 2022.
Brief comment
Continue to obtain large orders and accelerate the growth of performance
In November 2021, the company received two batches of purchase orders from a large pharmaceutical company, with order amounts of US $481 million (about 3.08 billion yuan, contract period from 2021 to 2022) and 2.720 billion yuan (contract period 2022). This time, the company added 3.542 billion yuan of orders, all of which are expected to be implemented in 2022, and the total of the three orders reached 9.5 billion yuan (most of which will be delivered in 2022). The company’s annual revenue in 2021 is about 4.505 billion yuan to 4.662 billion yuan. Three large orders will ensure the accelerated growth of the company’s performance in 2022.
The delivery of new production capacity in the two production bases was started, and the release of production capacity was comprehensively accelerated
On February 7, the company announced that the Dunhua production base has completed the delivery of a new plant, and the new batch capacity is expected to be nearly 500m3. At the same time, another API plant in Tianjin production base has started production, and it is expected that the new batch capacity will be 160m3 to meet the incremental demand of API production from customers outside China.
The construction of production capacity was accelerated to boost performance growth. In 2021h1, the company’s new capacity is about 200 cubic meters, and the total reactor volume reaches 3000 cubic meters. The company has started to speed up the construction of production capacity, adding more than 1700 cubic meters to 4700 cubic meters in 2021h2; In 2022h1, the Dunhua plant is expected to add four new plants, with an additional 1000 cubic meters, reaching 5700 cubic meters; In 2022h2, Tianjin and the Yangtze River Delta will add 700 cubic meters, reaching 6400 cubic meters as a whole, and the investment in capacity construction will be significantly increased, which is expected to help the company achieve accelerated revenue growth.
Actively grasp external M & A opportunities. Recently, the company acquired 100% equity of snapdragon chemistry in the United States for about US $57.94 million. Snapdragon is an American chemical technology company that provides industry-leading continuous reaction technology and early chemical process development services for pharmaceutical companies. This acquisition will strongly promote the further development of Asymchem Laboratories (Tianjin) Co.Ltd(002821) business in the United States, fully release the revolutionary technical advantages of continuous production, and provide customers with a one-stop solution from preclinical process research and development to cGMP commercial large-scale production. On October 25, 2021, Kainuo pharmaceutical, a subsidiary, acquired 100% equity of yipukono, a clinical mathematical statistics service company, with its own capital of 136 million yuan. Keno pharmaceutical’s professional ability and service ability in data management and biostatistics have improved the company’s clinical cro business chain.
New business development has entered the fast lane. The company continued to invest in the construction of chemical macromolecules, preparation cdmo, biosynthesis technology, clinical research services, biological macromolecules cdmo and other emerging businesses. The annual revenue of emerging business segment increased by more than 65% year-on-year. Excluding the impact of exchange rate, the annual growth was more than 70%.
Profit forecast and investment rating
Considering the high prospect of small molecule cdmo industry and the company’s advantages in technology, responsiveness and customers, as well as the company’s continuous efforts to build its own capacity platform and expand service capacity, we expect the revenue from 2021 to 2023 to be 4.593 billion yuan, 11.878 billion yuan and 12.028 billion yuan respectively, with a year-on-year growth rate of 45.8%, 168.6% and 1.3% respectively; The net profit attributable to the parent company was 1.05 billion yuan, 2.764 billion yuan and 2.875 billion yuan respectively, with a year-on-year growth rate of 45.4%, 163.3% and 4.0% respectively. The PE corresponding to the current stock price was 77, 29 and 28 times, maintaining the “buy” rating.
Risk tips
The growth of follow-up orders and commercial business was lower than expected; Business expansion is less than expected; Capacity expansion and utilization are not as expected; Exchange rate fluctuations affect the company’s performance.
