\u3000\u3 Shengda Resources Co.Ltd(000603) 259 Wuxi Apptec Co.Ltd(603259) )
During the reporting period, the company achieved an operating revenue of 22902385100 yuan, a year-on-year increase of 38.50%; The total profit was 6015608900 yuan, a year-on-year increase of 78.54%; The net profit attributable to the shareholders of the listed company was 50971553 million yuan, a year-on-year increase of 72.19%; The net profit attributable to shareholders of listed companies after deducting non recurring profits and losses was 40636332 million yuan, a year-on-year increase of 70.38%; The basic earnings per share was 1.75 yuan, a year-on-year increase of 65.09%.
Strong growth in core businesses offset negative factors. During the reporting period, the company’s chemical business achieved an operating revenue of 140872202 million yuan, a year-on-year increase of 46.93%; The gross profit margin was 39.51%, down 1.68 percentage points from the same period last year. The test business realized an operating revenue of 4525111300 yuan, a year-on-year increase of 38.03%; The gross profit margin was 31.70%, an increase of 0.09 percentage points over the same period last year. The operating income of biology business was 1985092500 yuan, with a year-on-year increase of 30.05%; The gross profit margin was 38.73%, down 2.99 percentage points from the same period last year. Ctdmo business realized an operating revenue of 10264012 million yuan, a year-on-year decrease of 2.79%; The gross profit margin was – 2.03%, down 16.06 percentage points from the same period last year. The operating revenue of new drug R & D was 12510399 million yuan, a year-on-year increase of 17.47%; The gross profit margin was 43.90%, down 3.11 percentage points from the same period last year. In the company’s operating revenue structure, overseas business accounts for a large proportion. Affected by multiple factors such as the depreciation of the US dollar and the rise in the price of upstream API, the company’s gross profit margin has decreased as a whole, but the chemical business, testing business and biological business have achieved strong growth, driving the high-speed growth of the company’s overall performance.
Endogenous epitaxial two wheel drive supports the rapid growth of performance. In terms of chemical business, during the reporting period, the company accelerated capacity expansion, Changzhou phase II, Taixing, Wuxi oral and sterile filling preparation plants have been put into operation, while Changzhou phase III, Taixing phase I, Delaware and other expansion steps continue to advance; During the reporting period, the company acquired kuwei factory in Switzerland to further expand the production capacity of the company’s chemical business. The chemical business may double its growth rate in 2022. In terms of testing business, the company has obvious integration advantages, sufficient orders on hand, and the revenue may continue to grow. In terms of ctdmo business, the company has completed the acquisition of oxgene in the UK to enhance the competitive advantage of ctdmo business, and ctdmo business may realize profit reversal. On the whole, the company has sufficient orders on hand, and the pace of capacity expansion and M & A is advancing steadily, which is expected to support the rapid growth of the company’s performance.
Technical capabilities provide long-term competitive advantage. During the reporting period, the company’s R & D capacity continued to improve, with R & D expenses reaching 942241900 yuan, a year-on-year increase of 35.91%. The company vigorously builds technology platforms such as enzyme catalysis and flow chemistry. With the continuous increase of the proportion of investment in pharmaceutical R & D outsourcing in China and the world, the high prosperity of the company’s industry is expected to continue to improve. The service cost advantage of the company’s overweight technology platform investment and R & D integration will be further highlighted to build the company’s core competitive advantage.
Investment suggestion: after adjusting the company’s diluted EPS from 2022 to 2024 (excluding the impact of increasing share capital temporarily), the EPS are 2.91 yuan, 3.53 yuan and 4.41 yuan respectively, and the corresponding dynamic P / E ratios are 37.91 times, 31.25 times and 25.03 times respectively Wuxi Apptec Co.Ltd(603259) as a leading cdmo / cro enterprise in China, the “integrated” platform has obvious advantages. The CXO industry relies on orders to drive performance growth. The company has sufficient orders on hand, the growth trend is relatively clear, and maintains the buy rating.
Risk tips: epidemic risk, increased industry competition risk and exchange rate fluctuation risk.
