Wuxi Apptec Co.Ltd(603259) (603259)
The performance of the first three quarters maintained rapid growth. In the first three quarters, the company realized an operating revenue of RMB 16.521 billion, a year-on-year increase of 39.84%, a net profit attributable to the parent of RMB 3.562 billion, a year-on-year increase of 50.41%, and a net profit attributable to the parent after deduction of non-profit of RMB 3.106 billion, a year-on-year increase of 87.79%. In the third quarter alone, the operating revenue was 5.985 billion yuan, a year-on-year increase of 30.58%, the net profit attributable to the parent was 887 million yuan, a year-on-year increase of 36.23%, and the net profit attributable to the parent after deduction was 979 million yuan, a year-on-year increase of 87.19%.
Multiple financial indicators maintain rapid growth, and the continuous release of future performance is guaranteed. As of the third quarter of 2021, the company’s contract liabilities were 2.548 billion yuan, a year-on-year increase of 98.91%, accelerating quarter by quarter, indicating a rapid growth in orders on hand. In terms of inventory, as of the third quarter of 2021, the company’s inventory was 4.52 billion yuan, showing the characteristics of quarterly acceleration. The company’s capacity construction is the leading indicator of the company’s performance release. As of the third quarter of 21, the company’s fixed assets were 7.434 billion yuan and the projects under construction were 5.436 billion yuan. From 19q3 to 20q2, the growth rate of projects under construction remained at a low level. From 20q3, the construction of projects under construction was accelerated. By 21q3, the growth rate of projects under construction reached 114.35%. With the continuous expansion of construction in progress, the company’s fixed assets have also accelerated since 20q1. By 21q3, the growth rate of fixed assets has reached 42.20%.
Investment suggestion: it is estimated that from 2021 to 2023, the company will realize operating revenue of RMB 22.535 billion, 29.922 billion and 39.350 billion, with growth rates of 36.29%, 32.78% and 31.51% respectively; The net profit attributable to the parent company was 4.562 billion yuan, 6.039 billion yuan and 7.892 billion yuan, with growth rates of 54.11%, 32.38% and 30.68% respectively; At present, the corresponding PE valuation of the stock price is 77, 58 and 45 times, which is rated as “recommended”.
Risk tips: Overseas epidemic risk, loss of key customers, exchange rate fluctuation risk, brain drain risk, and the risk that the U.S. government includes the company in the entity list.
