\u3000\u30 Shenzhen Quanxinhao Co.Ltd(000007) 39 Apeloa Pharmaceutical Co.Ltd(000739) )
2021 annual report:
During the reporting period, the company realized an operating revenue of 89426182 million yuan, a year-on-year increase of 13.49%; The total profit was 1114079800 yuan, a year-on-year increase of 15.91%; The net profit attributable to the shareholders of the listed company was 95550200 yuan, a year-on-year increase of 17.00%; The net profit attributable to shareholders of listed companies after deducting non recurring profits and losses was 833083100 yuan, a year-on-year increase of 20.53%; The basic earnings per share was 0.81 yuan, a year-on-year increase of 17.00%.
The three core businesses of API, cdmo and preparation grew in an all-round way. During the reporting period, the company’s intermediate and raw material business realized an operating revenue of 65461289 million yuan, a year-on-year increase of 10.37%; The gross profit margin was 19.15%, down 2.83 percentage points from the same period last year. The company’s cdmo business realized an operating revenue of 13939268 million yuan, a year-on-year increase of 32.09%; The gross profit margin was 43.12%, an increase of 1.50 percentage points over the same period last year. The preparation business realized an operating revenue of 8674345 million yuan, a year-on-year increase of 14.11%; The gross profit margin was 57.42%, a decrease of 0.21 percentage points over the same period last year. The company’s three core businesses have achieved positive growth. Among them, with the transmission of cost pressure to the downstream, the profitability of the company’s API business is expected to improve, providing strong support for the company’s performance. Combined with the company’s order reserve, cdmo business is expected to maintain rapid growth. Memantine hydrochloride tablets, cefixime tablets and other products were approved, providing new growth points for the preparation business.
The growth rate of revenue and net profit after deduction in the fourth quarter improved significantly month on month, and the cost pressure of API is expected to be gradually digested. Quarterly, the company achieved an operating revenue of 2122027700 yuan in 2021q3, a year-on-year increase of 16.67%; The net profit attributable to the parent company after deducting non profits was 169.75 million yuan, with a year-on-year increase of 9.82%. In 2021q4, the operating revenue was 2543464800 yuan, with a year-on-year increase of 22.93%; The net profit attributable to the parent company after non deduction was 159935100 yuan, a year-on-year increase of 18.21%. As the price of raw materials in 2021 is expected to be lower than that in 2023, the company’s profitability will be gradually relieved or the cost of raw materials will be lower than expected.
The proportion of cdmo business revenue continued to increase, and the preparation business ushered in restorative growth. During the reporting period, the company’s revenue structure continued to optimize, with new customers increasing by 81% year-on-year and quoted projects increasing by 50% year-on-year. Benefiting from the continuous and rapid growth of orders in hand of the company’s cdmo business, cdmo business has developed rapidly, and the proportion of business revenue has continued to increase, accounting for 13.39% of the total revenue in 2020 and 15.59% in 2021. The continuous optimization of revenue structure will help the company further improve its profitability. In terms of preparation business, affected by various policy factors, the company’s preparation business was established in 2020. However, with the approval of the consistency evaluation of cefuroxime sodium for injection and ceftazidime for injection, levofloxacin tablets and ceftazidime for injection were included in the national centralized procurement, and the company’s preparation business ushered in restorative growth, In the future, as the company’s cefixime tablets and other products participate in the national drug centralized purchase, if they are selected, they will further help the growth of the company’s preparation business.
Investment suggestion: we expect the company’s EPS after dilution from 2022 to 2024 (excluding the impact of growth conversion) to be 1.07 yuan, 1.38 yuan and 1.72 yuan respectively, and the corresponding dynamic P / E ratios are 27.43 times, 21.25 times and 16.99 times respectively Apeloa Pharmaceutical Co.Ltd(000739) as a leading enterprise in the production and export of China National Chemical Engineering Co.Ltd(601117) API, the company’s cdmo revenue proportion continues to increase, the business structure continues to be optimized, the profitability is improved, the expectation is clear, and the buy rating is maintained.
Risk warning: cdmo business development is not as expected, policy risk, covid-19 pneumonia epidemic risk
