Apeloa Pharmaceutical Co.Ltd(000739) (000739)
The company’s performance in the third quarter was lower than expected: the company achieved an operating revenue of 6.399 billion yuan in the first three quarters, a year-on-year increase of 10.13%, and a net profit attributable to the parent company of 762 million yuan, a year-on-year increase of 20.95%. In the third quarter alone, the company achieved an operating revenue of RMB 2.122 billion, a year-on-year increase of 16.67%, and a net profit attributable to the parent company of RMB 209 million, a year-on-year increase of 4.03%. Overall, the company’s performance in the third quarter was lower than market expectations, mainly due to the erosion of profits caused by the rise of raw material costs and shipping costs.
Analysis of the company’s operation: as of the mid-term report of 2021, the company’s API and intermediate business revenue was 4.277 billion yuan, a year-on-year increase of 8.29%, accounting for 73.35%; The revenue from contract R & D and production services was 721 million yuan, a year-on-year increase of 30.65%, accounting for 16.85%, an increase of 3.46 PCT over the end of 2020; The revenue of preparation business was 402 million yuan, a year-on-year increase of 9.46%, accounting for 9.40%. It can be clearly seen that the company relies on the advantages of API and intermediate business to develop and upgrade the contract customized production service and preparation business. The company is rapidly expanding its production capacity. In the third quarter of 21, the projects under construction of the company were RMB 235 million, RMB 373 million and RMB 500 million respectively, with growth rates of 68.24%, 130.37% and 187.64% respectively. In the future, the company’s performance is expected to be further improved as the expanded capacity is gradually put into operation.
Investment suggestion: it is estimated that from 2021 to 2023, the company will realize operating revenue of RMB 9.125 billion, 10.746 billion and 12.722 billion, with a year-on-year increase of 15.81%, 17.76% and 18.39%; The net profit attributable to the parent company was RMB 1.051 billion, 1.366 billion and 1.762 billion, with a year-on-year increase of 28.68%, 29.97% and 29.02%. At present, the PE valuation corresponding to the stock price is 40 / 30 / 24 times, which is rated as “recommended”.
Risk tips: Overseas epidemic risk, loss of key customers, brain drain risk, exchange rate fluctuation risk, and the risk of the U.S. government including the company in the entity list
