\u3000\u3 Shengda Resources Co.Ltd(000603) 229 Zhejiang Ausun Pharmaceutical Co.Ltd(603229) )
Event: the company issued a non-public offering plan for 2022. It plans to issue no more than 10% of the current total share capital, that is, no more than 287048 million shares (including), and the total amount of fund-raising is no more than 500 million yuan (including). The net amount after deducting the issuance expenses is planned to invest in the internationalization project of high-end preparations (phase I) Industrialization project of characteristic APIs and key pharmaceutical intermediates (phase II) and supplementary working capital.
The integrated industrial chain continues to upgrade, expand production capacity and enhance overall competitiveness. 1) The internationalization project of high-end preparations (phase I) is planned to have a total investment of 516 million yuan, and it is planned to use 290 million yuan of raised funds. This project is the phase I project of “Zhejiang Qizheng Pharmaceutical Co., Ltd. in Taizhou Bay circular economy industrial cluster with an annual output of 450 million anti-tumor tablets and capsules and 3.9 billion solid tablets and capsules”. Relying on the advantages of API R & D and production platform, Expand to the R & D and production side of preparations, and continue to promote the upgrading strategy of the integrated industrial chain of intermediates + characteristic APIs + preparations, which is expected to further optimize the business structure; 2) The industrialization project of characteristic APIs and key pharmaceutical intermediates (phase II) is planned to have a total investment of 162 million yuan, and it is planned to use 130 million yuan of raised funds. The company has rich reserve projects, and has a variety of intermediates, API products and reserve products with mature technology, At the same time, the capacity demand of downstream preparation customers in the late clinical stage of new drugs and even in the commercialization stage after being approved for listing increases. The implementation of this project is expected to solve the problems of tight capacity structure and capital shortage of the company, and provide capacity support to meet the growing demand of markets outside China. The implementation of the whole raised investment project will help the company to further establish and give full play to the advantages of industrial chain integration, cultivate new profit growth points and continuously improve its overall competitiveness.
As a fast-growing API enterprise under the helm of scientific and technological entrepreneurs and supported by the “big R & D” system, cdmo is undergoing rapid transformation and development, API and intermediate varieties are constantly relaying, holding high the preparation strategy to bring new long-term growth points, and is optimistic about the long-term growth of the company. With the concept of “large-scale research and development to achieve unconventional and rapid development”, the company has vigorously invested in scientific and technological innovation and formed a rich product gradient combination to drive the rapid development of the company. Founder Zheng Zhiguo has been deeply engaged in the research and development of medical chemical industry for many years, led the rapid growth of the company, and has been among the leading echelons of China Meheco Group Co.Ltd(600056) manufacturing since its establishment for more than 10 years. The company’s cdmo develops rapidly, accounting for more than half of its revenue in 2021h1. With the gradual release of API and intermediate production capacity, its performance is expected to maintain rapid growth. In addition, the extension to the preparation is expected to bring new long-term growth points. Among them, the ischemic stroke treatment drug BZP has great bomb potential and is expected to be listed in 2025.
Profit forecast and investment suggestions: we expect the company’s revenue from 2021 to 2023 to be 548, 781 and 1058 million yuan, with a year-on-year increase of 33.9%, 42.6% and 35.5%; The net profit attributable to the parent company was 135 million yuan, 203 million yuan and 293 million yuan, with a year-on-year increase of 55.4%, 50.7% and 43.9%; The corresponding EPS is 0.47, 0.71 and 1.02 yuan. The average valuation of comparable companies is 66% in 2021 × At present, the company’s share price corresponds to 99 / 66 / 46 times PE in 2021 / 2022 / 2023. Considering the rapid development of the company’s cdmo, the catalysis of API and intermediate business released with varieties and production capacity is expected to continue to increase in large quantities. The business layout of generic drugs and innovative drugs will create new long-term growth points and maintain the “buy” rating.
Risk warning events: product R & D and technological innovation risks; International trade environment change risk; Environmental protection and safety production risks; Exchange rate fluctuation risk; There is a risk that the public information is delayed or not updated in time.
