\u3000\u3 Shengda Resources Co.Ltd(000603) 259 Wuxi Apptec Co.Ltd(603259) )
Events
On March 9, Wuxi Apptec Co.Ltd(603259) announced that from January to February 2022, orders on hand and sales revenue increased by more than 65% year-on-year. In addition, the company expects Q1 revenue to increase by 65-68% year-on-year in 2022 and the annual revenue to increase by 65-70% year-on-year in 2022.
Brief comment
From January to February, the performance was bright, and the orders in hand and sales revenue reached a new high Wuxi Apptec Co.Ltd(603259) as a global competitive leader in the CXO sector, it has a unique integrated crdmo (contract research, development and production) and ctdmo (contract testing, R & D and production) business model, and provides global customers with whole process integration and end-to-end services. The company’s orders and operating performance from January to February 2022 are bright. On the one hand, the industry is booming, on the other hand, it highlights the company’s international competitive advantage and competitiveness α grow up.
The five business departments continue to be empowered, and the company’s operation continues to improve. Wuxichemistry continues to build an integrated end-to-end service capacity, with strong demand for orders. The pipeline accelerates as a whole and maintains high-speed growth as a whole. It is optimistic about the development of new businesses such as oligo & peptide (it is expected that related businesses will achieve more than 100% growth) and preparations in 2022. Business units such as wuxitesting and wuxibiology continued to maintain a strong growth trend, especially preclinical development business orders and revenue growth. Wuxiatu’s capacity-building continues to improve, its production capacity expands rapidly, and its orders outside China are full. It is expected that it will enter an accelerated rise cycle from 2022. The pipeline of wuxiddsu is pushed forward smoothly. It is expected that the first project will enter the commercialization stage in 2022, resulting in a certain sales share.
High prosperity of the industry + abundant orders on hand, full of driving force for future development. With the global industrial transfer and industrial upgrading, the demand for overseas pharmaceutical innovation services continues to maintain a strong state. In addition, China’s local demand for innovative pharmaceutical services has risen, and China’s CXO industry as a whole has maintained a high boom Wuxi Apptec Co.Ltd(603259) as a leader in the industry, the newly signed and in hand orders are full, and the future performance is uncertain. We are optimistic about the future development potential of the company.
Profit forecast and investment suggestions
We expect the net profit attributable to the parent company from 2021 to 2023 to be RMB 5.09777659528 billion, corresponding to 54 / 36 / 29 times of PE respectively, maintaining the “buy” rating.
Risk tips
Covid-19 epidemic aggravation risk, order execution less than expected risk, overseas supervision risk, ban lifting risk, core technical personnel loss risk, IP protection risk, investment risk, exchange rate fluctuation risk, raw material price rise risk, safety production and environmental protection risk.
