\u3000\u30 Guangdong Tengen Industrial Group Co.Ltd(003003) 63 Porton Pharma Solutions Ltd(300363) )
Event overview
The company released the annual performance express of 2021: the revenue in 2021 was 3.105 billion yuan, with a year-on-year increase of 49.87%; The net profit attributable to the parent company was 524 million yuan, a year-on-year increase of 61.49%; The net profit deducted from non parent company was 503 million yuan, with a year-on-year increase of 74.42%.
Cdmo capacity expansion: the company plans to invest 420 million yuan to expand its small molecule API production base in Yichun, Jiangxi Province. The construction period of the project is 22 months. It is planned to be completed and put into operation by the end of 2023, and the new capacity is expected to be 300 cubic meters.
Under the assumption of new business losses, the company still handed over beautiful answers
In 2021, the operating revenue reached 3.105 billion yuan, a year-on-year increase of 49.87%, and the revenue side exceeded 3 billion yuan. Quarter by quarter, Q4 achieved a revenue of 1.075 billion yuan, a new high in a single quarter, and the revenue side showed an increasing trend quarter by quarter. The net interest rate reached 16.8% in 2021 and 15.7% (+ 1PCT) in 2020, mainly due to the continuous improvement of the company’s capacity utilization and operation efficiency, as well as the further optimization of product structure, and the continuous optimization of the company’s overall profitability.
Excluding the losses of new businesses and joint-stock companies, the profit side performance is super excellent. The company’s preparation cdmo business and gene cell cdmo business are still in the stage of business expansion and capacity-building, reducing the net profit of the company’s consolidated statements by 106 million yuan in total; At the same time, the industry related joint-stock companies with the company’s strategic layout are still in the loss stage, reducing the net profit of the consolidated statements by 31 million yuan in total. After excluding the above influence, the net profit attributable to the parent company increased by 1.16 billion yuan year-on-year; The net profit deducted from non parent company was 639 million yuan, with a year-on-year increase of 92.81%.
High growth trend of “capacity” + “order” two wheel drive company
In terms of orders: the total amount of two major orders for small molecule innovative drug cdmo signed by the company is US $898 million (equivalent to about RMB 5.717 billion). According to the agreement, most orders are mainly delivered in 2022. The total contract amount of a single order on hand disclosed at present has increased by 84% year-on-year in 2021, and the superposition of other cdmo project orders is expected to support the excellent performance in 2022.
In terms of production capacity: the company has increased capital expenditure. New production capacity plans will be implemented this year and next to support the rapid development of business. 1) Yuyang pharmaceutical: the production capacity of nearly 580m3 will be gradually released in 2022; 2) Changshou base: the expansion of workshop 301 was announced on February 10, 2022, with an estimated additional capacity of 142.6m3. It is planned to be put into operation in March 2023; 3) Yichun, Jiangxi: on March 2, 2022, it was announced to expand two new workshops, with an estimated additional capacity of 300m3. It is planned to be completed and put into operation by the end of 2023. According to the new capacity plan, we expect that by the end of 2023, the company’s capacity will increase by about 53% year-on-year in 2021.
Investment suggestion: it is estimated that the net profit attributable to the parent company from 2021 to 2023 will be 524 million yuan, 1237 million yuan and 1403 million yuan respectively, with a year-on-year increase of 61.5%, 136.2% and 13.4%. Based on the company’s orders in hand and new production capacity, we believe that the company’s high performance growth is deterministic and sustainable, so we maintain the “recommended” rating.
Risk warning: the risk of performance falling short of expectations, new business investment risk and fixed asset investment risk.
