Asymchem Laboratories (Tianjin) Co.Ltd(002821) (002821)
Event: on November 28, 2021, the company announced that the wholly-owned subsidiary Jilin Asymchem Laboratories (Tianjin) Co.Ltd(002821) Pharmaceutical Chemistry Co., Ltd. and a pharmaceutical company signed a new batch of supply contracts for the continuous supply of a small molecular chemical innovative drug cdmo service, and the supply time is 2022. The contract amount is equivalent to about RMB 2.720 billion.
Heavy contracts have been signed successively, totaling about 5.8 billion yuan, highlighting the company’s small molecule cdmo service strength. Following the signing of the supply contract of more than US $480 million on November 16, the company received another heavy order of RMB 2.72 billion, and its strength in the field of small molecule cdmo has been continuously recognized by customers. As the world’s leading cdmo one-stop comprehensive service provider serving the R & D and production of new drugs, the company has nearly 20 years of customer reputation and technical experience. It can provide one-stop CMC service in the whole life cycle of drugs, efficient and high-quality R & D and production services, and has obvious advantages in core competitiveness. The successive signing of heavy contracts shows that the company has high business stickiness in serving customers, and the strength of small molecule cdmo service is obvious.
Large orders catalyze the company’s short-term and long-term performance. The order signing amount of RMB 2.72 billion is close to the company’s total main revenue in the first three quarters of 2021 (2.923 billion yuan), which will further stimulate the company’s short-term performance. The accumulated service reputation and industry popularity will contribute to the continuous expansion of business territory in the future. We expect that on the basis of this order, the company will receive more orders for similar commercial projects; at the same time, it will be more active in developing macromolecular business segments and expanding clinical customers and biotech customer projects Now the sustainable development of the whole business territory.
The company’s production capacity continues to increase, and the performance guarantee is solid. According to the data reported in the interim report, the subsidiary Jilin Asymchem Laboratories (Tianjin) Co.Ltd(002821) has completed the commissioning of new plants, upgraded and transformed several workshops and plants, and the volume of the reactor has been nearly 3000m3.
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 this year; Dunhua and Zhenjiang bases are expected to add 1500m3 of capacity next year. Continuous reaction technology has achieved large-scale improvement of reaction efficiency and yield, providing a solid foundation for the company’s large-scale performance.
Profit forecast and investment rating. After considering major contracts, we raised our profit forecast again. From 2021 to 2023, the net profit attributable to the parent company was RMB 998 million, 1.892 billion and 2.193 billion respectively, with a year-on-year increase of 38.2%, 89.6% and 15.9% respectively. The corresponding PE was 116x, 61x and 53x respectively, maintaining the “buy” rating.
Risk warning: risk of customer demand change; Market environment uncertainty risk; Exchange rate fluctuation risk.
