Asymchem Laboratories (Tianjin) Co.Ltd(002821) new orders reached a new high and performance growth accelerated again

Asymchem Laboratories (Tianjin) Co.Ltd(002821) (002821)

event

On November 28, Asymchem Laboratories (Tianjin) Co.Ltd(002821) announced that in the process of continuously providing cdmo services for a small molecule chemical innovative drug of a pharmaceutical company, the company signed a new batch of supply contracts with related products, with a contract amount equivalent to about 2.72 billion yuan, which was much higher than expected.

make a concise evaluation

Single project orders have repeatedly reached new highs, accelerating the high growth of future performance. CXO has a high prosperity in the industry, the company’s competitiveness has been continuously improved, and single project orders have reached record highs. The delivery time of the order contract disclosed in this announcement is 2022. If it is successfully performed, it is expected to have a positive impact on the performance in 2022.

Capacity release resonates with newly signed large orders, and the performance will continue to accelerate in the next 1-2 years. The production capacity will be gradually released in 2021, It is estimated that about 55% of the new capacity will be released throughout the year (based on the volume of the reactor). Considering the average execution cycle of large orders and other factors, the performance will be released gradually and steadily, and we are optimistic about the performance of the company in the next 1-2 years. In addition, the signing of the last two major contracts will further accelerate the process of accelerating the performance of the company. We are firmly optimistic about the development potential of Asymchem Laboratories (Tianjin) Co.Ltd(002821) .

Core technology has advantages, continuous reaction, cost reduction and efficiency increase. Continuous reaction technology is a new process that uses continuous flow chemical synthesis method to replace batch reaction. It has the advantages of safety, environmental protection, high efficiency and low cost. Compared with the batch reaction of the traditional reactor, the continuous reaction can improve the efficiency from 30% to 75%, save 70% of the equipment floor area and labor consumption, and reduce 50% of the production cost and quality inspection time. We expect that continuous reaction technology will be applied to the project to greatly improve production efficiency.

Coordinated development of multiple services to create an integrated cdmo leader. In the field of small molecule cdmo, clinical projects are constantly enriched and commercial projects continue to expand. The revenue of new business areas continued to grow at a high speed, and the preparation business grew rapidly, gradually forming a one-stop collaboration; In the clinical field, in 2021q3, yipukono was acquired to layout the digital system business and improve the comprehensive service capacity of clinical cro; In the field of macromolecules, the orders of chemical synthetic macromolecules and biological macromolecules are growing rapidly, and the company actively arranges the CGT field at the same time.

Profit adjustment and investment suggestions

Considering the current impact of this major contract and order continuity, we raised the EPS forecast from 2021 to 2023 to 4.01/7.20/8.70 yuan (0.75% / 15.23% / 9.38% respectively), and the corresponding PE was 131 / 73 / 60 times respectively, maintaining the “buy rating”.

Risk statement

The contract performance is not as expected, the sales of downstream new drug products is not as expected, the price of upstream raw materials increases, exchange rate fluctuations, environmental protection and safety production, new business expansion is not as expected, and the loss of core technical (business) personnel, etc

 

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