\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 59 Pharmaron Beijing Co.Ltd(300759) )
Key points
Event: the company released the performance express for 2021. The annual operating revenue was RMB 7.444 billion (+ 45.00% YoY), the net profit attributable to the parent was RMB 1.661 billion (+ 41.68% YoY), and the non net profit attributable to the parent was RMB 1.341 billion (+ 67.46% YoY), which was on the right side of the performance forecast range.
Each service module had a high growth, and macromolecules and CGT exceeded expectations. In 2021, the company’s laboratory services achieved a revenue of 4.566 billion yuan (+ 41.09% YoY), of which the growth rate of Bioscience revenue was higher than that of laboratory chemistry; CMC (small molecule cdmo) service achieved a revenue of 1.746 billion, a year-on-year increase of 42.90%; The revenue of clinical research services was 956 million yuan, an increase of 51.96% year-on-year. In addition, macromolecules and CGT services achieved revenue of 151 million yuan (+ 466.58% YoY), exceeding market expectations.
In 2022, the release of production capacity will be accelerated to ensure the high growth of small molecule cdmo. For China’s cdmo capacity, Shaoxing phase I will put 200m3 into operation in mid January 2022 and 400m3 is expected to be put into operation in 2022q2 to meet the production needs of late clinical and commercial projects. In terms of overseas mergers and acquisitions, the company completed the acquisition of cramlington production base in the UK in January 2022, with an increased production capacity of more than 100m3, which can provide cGMP API production services from pilot test to commercialization. It will cooperate with hoddesdon process development and early cGMP API production team in the UK to provide end-to-end chemical and production services for customers. To sum up, in 2022, the company’s post clinical and commercial production capacity will be released faster outside China, which is expected to further open up the diversion logic of laboratory service cmc-cdmo.
The demand for overseas CGT business is strong, and the loss is expected to narrow in 2022. For China’s macromolecular business, the company is building two 2000L production capacity in Ningbo and is expected to undertake macromolecular GMP production service projects in 2023h1. Overseas CGT business, American absorption acquired by the company in November 2020 mainly provides analysis and testing services, with strong downstream demand; The British ABL acquired by the company in 2021q2 began to provide external services in 2022, and the loss is expected to narrow in 2022 (ABL loss of 100 million + RMB in 2021).
Profit forecast, valuation and rating: the company is a leading global preclinical cro enterprise, and the one-stop business layout is expected to open up growth space. According to the 2021 performance express, we raised the net profit attributable to the parent company for 21 years to RMB 1.661 billion (up 3.4%), maintained the net profit attributable to the parent company for 22-23 years to RMB 2.150/2.941 billion, with a year-on-year increase of 41.68% / 29.44% / 36.79% respectively, corresponding to 50 / 39 / 28 times of PE for 21-23 years, and maintained the “buy” rating.
Risk warning: repeated outbreaks in China; The R & D investment of enterprises is less than expected; Increased competition; The progress of the company’s new business layout is less than expected.
