\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 59 Pharmaron Beijing Co.Ltd(300759) )
Event: on March 10, 2022, the company released the performance express of 2021. In 2021, the company is expected to realize an operating revenue of 7.444 billion yuan, a year-on-year increase of 45.0%; The net profit attributable to the parent company was 1.661 billion yuan, a year-on-year increase of 41.7%; The non net profit deducted was 1.341 billion yuan, a year-on-year increase of 67.5%; The adjusted non IFRS net profit attributable to the parent company was 1.462 billion yuan, a year-on-year increase of 37.4%.
The performance is at the upper limit of the notice, and it has reached an all-time high in a single quarter. Quarter by quarter, 2021q4 is expected to achieve an operating revenue of about 2.14 billion yuan (+ 38.4%), a net profit attributable to the parent company of about 620 million yuan (+ 62.0%), a net profit deducted from non IFRS of about 410 million yuan (+ 110%), and a net profit attributable to the parent company of about 410 million yuan (+ 37.1%), all of which hit a record high. We expect that the main reasons are: ① the scale effect brings about the continuous improvement of operating efficiency and profitability; ② The company continues to improve its capital management ability and bring additional benefits; ③ The continuous expansion of overseas income and the accelerated expansion of the Chinese market.
The competitive advantages of integrated and multi therapy platforms are significant, and the four sectors continue to make efforts, which is expected to promote the continuous growth of the overall business. 1) Laboratory services: it is estimated that the revenue will be 4.566 billion yuan (+ 41.09%) in 2021. With the continuous release of the scale advantages of chemical and biological sciences and the continuous improvement of the proportion of Biological Sciences, the profitability is expected to continue to increase. 2) Small molecule cdmo: it is estimated that the revenue will be 1.746 billion yuan (+ 42.90%) in 2021. The CMC of the company has strong technical strength and rich project reserves. With the gradual implementation of epitaxial and endogenous commercial production capacity, the proportion of projects in the later stage of clinical practice continues to increase, and the small molecule cdmo business is expected to accelerate its growth. 3) Clinical research services: it is estimated that the revenue will be 956 million yuan (+ 51.96%) in 2021. With the gradual integration of the integrated clinical research service platform and the complementary advantages of detaimai, Nanjing Sirui and liansida, it is expected to maintain rapid growth in the future. 4) Macromolecular and cellular gene therapy: it is estimated that the revenue in 2021 will be 151 million yuan (+ 466.58%). The company will build a C & gt service platform integrating R & D and production by investing in accugengroup, acquiring absorption and ABL, and build an end-to-end macromolecular R & D and production platform by extending macromolecular discovery and research services from laboratory services and building a macromolecular production base in Ningbo. With the continuous improvement of the multi therapy platform, it is expected to continuously contribute new increment to the company.
Profit forecast and investment suggestions: we estimate that the operating revenue of the company from 2021 to 2023 will be 7.030 billion yuan, 9.359 billion yuan and 12.392 billion yuan respectively, with a year-on-year increase of 36.94%, 33.13% and 32.40%; The net profit attributable to the parent company was 1.566 billion yuan, 2.067 billion yuan and 2.720 billion yuan respectively, with a year-on-year increase of 33.60%, 31.94% and 31.62%. As one of China’s leading cro + CMO enterprises, the company has significant advantages in integrated service platform. In the future, with the continuous improvement of end-to-end and multi therapy service platform, it is expected to drive the continuous and rapid growth of performance and maintain the “buy” rating.
Risk warning events: the risk that the R & D investment of innovative drug enterprises does not meet the expectations, the risk that the new business progress is not as expected, the risk of deterioration of the competitive environment and the risk of exchange rate fluctuation.
