\u3000\u3 Shengda Resources Co.Ltd(000603) 259 Wuxi Apptec Co.Ltd(603259) )
Events
The company issued the announcement of main business data from January to February
The company’s unique integrated crdmo and ctdmo business model continued to work. From January to February 2022, the year-on-year growth rate of orders and sales revenue exceeded 65%, reaching a record high. The company expects revenue to grow 65-68% year-on-year in the first quarter of 2022. The company’s revenue is expected to grow by 65-70% year-on-year.
Brief comment
The operating data from January to February are bright, the orders on hand are full, and the high growth of Q1 and the whole year can be expected for 22 years. From January to February, the year-on-year growth rate of the company’s orders on hand and sales revenue exceeded 65%, reaching a record high. The company expects revenue to grow 65-68% year-on-year in the first quarter of 2022. The company’s revenue is expected to grow by 65-70% year-on-year.
After integrating crdmo strategy, the company has obvious synergy. Looking forward to 2022, the five sectors will go hand in hand: 1) wuxichemistry: the operating revenue will reach 4.08 billion yuan in 2021, with a year-on-year increase of 47%. Looking forward to 2022, the API demand of this sector will grow strongly, and the revenue growth of the whole chemical sector is expected to double in 2022; 2) Wuxitesting: in 2021, the revenue reached 4.53 billion yuan, a year-on-year increase of 38%. Looking forward to 2022, revenue growth will continue the strong momentum of the past few years; 3) Wuxibiology: in 2021, the revenue was 1.99 billion yuan, with a year-on-year increase of about 30%. Looking forward to 2022, revenue growth will continue the strong momentum of the past few years; 4) Wuxiatu: in 2021, the revenue will reach 1.03 billion yuan, a slight decrease of 3% over the same period. Looking forward to 2022, it is expected to enter the turning point of business development, and the revenue growth is expected to exceed the growth rate of the industry; 5) Wuxiddsu: in 2021, the revenue reached 1.25 billion yuan, with a year-on-year increase of about 17%. It is estimated that the revenue growth rate will decrease slightly in 2022, mainly due to the decline in the demand for fast follow new drugs in China’s new drug market, and the demand of some customers began to shift to new molecular drugs (such as small nucleic acid, protac and polypeptide drugs). The short-term revenue will have a slight impact on the overall impact of the company, In the long run, the unit price and sales commission of the project will increase to a certain extent in the future.
Profit forecast and investment rating
We expect that the company will realize operating revenue of 22.901 billion yuan, 38.239 billion yuan and 48.424 billion yuan from 2021 to 2023, with corresponding growth rates of 38.5%, 67.0% and 26.6% respectively. The net profit attributable to the parent company will be 5.097 billion yuan, 8.168 billion yuan and 10.009 billion yuan respectively, with corresponding growth rates of 72.2%, 60.3% and 22.5% respectively. The corresponding EPS will be 1.74, 2.79 and 3.42 yuan / share, and the PE corresponding to the current stock price will be 53.9, 33.6 and 27.5 times respectively, maintaining the buy rating.
Risk tips
The investment income fluctuates sharply; The number of new drug research and development is less than expected; Fierce competition in the industry; The rapid expansion of capacity affects capacity utilization and cost amortization.
