\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 59 Pharmaron Beijing Co.Ltd(300759) )
Key investment points
Express: in line with expectations, the growth continues to be strong
Performance express in 2021: the company realized revenue of 7.444 billion (yoy45%), net profit attributable to parent company of 1.661 billion (yoy41.68%), and net profit deducted of 1.341 billion (yoy67.46%). In 2021q4, the revenue was 2.143 billion (yoy38.42%), the net profit attributable to the parent was 621 million (yoy62.15%), and the non net profit deducted was 411 million (yoy110.67%). In 2021, the adjusted non GAAP net profit was 1.462 billion (yoy37.40%), and in 2021q4, the adjusted non GAAP net profit was 414 million (yoy36.88%).
Outlook: we are optimistic about the continuation of high growth in 2022, and cdmo is worth looking forward to
In 2021, all service modules achieved rapid growth, including laboratory service revenue of 4.566 billion (yoy41.1%) and CMC / cdmo revenue of 1.746 billion (yoy42.9%); Clinical cro service revenue is 956 million (yoy52.0%), macromolecule and CGT service revenue is 151 million (yoy466.58%). We believe that with the continuous launch of Shaoxing cdmo capacity in 2022h1, the revenue side of the company’s CMC / cdmo business is expected to maintain high growth in 2022. Laboratory services and clinical cro services are also expected to continue high growth under the continuous release of new production capacity, driving the revenue side to maintain high growth in 2022.
Profit forecast and valuation
We expect the company’s EPS to be 2.09, 2.78 and 3.75 yuan / share from 2021 to 2023. The closing price on March 10, 2022 corresponds to 38 times of PE in 2022 (28 times of PE in 2023), maintaining the “buy” rating.
Risk tips
Management risks brought by accelerated business layout, short-term fluctuations of orders, management challenges brought by clinical business layout, and new business expansion is less than expected risks.
