\u3000\u3 Shengda Resources Co.Ltd(000603) 259 Wuxi Apptec Co.Ltd(603259) )
Event summary
The company released its annual report for 2021: the operating revenue was 22.902 billion yuan, a year-on-year increase of 38.50%; The net profit attributable to the parent company was 5.097 billion yuan, a year-on-year increase of 72.19%; The net profit deducted from non parent company was 4.064 billion yuan, with a year-on-year increase of 70.38%; The gross profit margin was 36.27%, down 1.70pp from the same period last year, mainly due to the sharp depreciation of the US dollar against the RMB and the rise in the price of bulk materials.
Integration + end-to-end service, profitability continues to improve
The company created crdmo ctdmo business model and superimposed the service strategy of "follow molecules - follow customers - follow science" to provide customers with real one-stop services. Through 31 operating bases and branches around the world, the company provides services to more than 5700 active customers in 30 countries. The revenue from the top 20 pharmaceutical enterprises in the world is 6.733 billion yuan, a year-on-year increase of 24.1%, and the revenue from other customers in the world is 16.170 billion yuan, a year-on-year increase of 45.6%, which continues to drive business growth. The company's positioning spans the drug development value chain, and the synergy of the five business segments is gradually strengthened. Customers using multiple business departments of the company contributed a revenue of 19.639 billion yuan, a year-on-year increase of 36.8%, accounting for 85.75% of the total revenue.
Strengthen the crdmo business model and significantly enhance the synergy
The company continued to strengthen the crdmo integrated service mode, strengthened the diversion of front and rear end projects, and achieved a revenue of 14.082 billion yuan in 2021, a year-on-year increase of 46.93%. The revenue of the upstream small molecule drug discovery service segment was 6.167 billion yuan, with a year-on-year increase of 43.2%. A total of 310000 customized compounds were synthesized, opening a "flow inlet" for downstream businesses; The revenue of process R & D and production (D & M) segment was 7.92 billion yuan, with a year-on-year increase of 49.94%. The total number of new drug molecules served by cdmo reached 1666 (+ 732), including 14 commercial projects, with a year-on-year increase of 50%. The cdmo sector of new capabilities and technologies has a strong growth momentum. The cdmo service revenue of oligonucleotide and polypeptide drugs reached US $115 million, with a year-on-year increase of 145%. The number of D & M customers and molecules increased significantly by 128% and 154% compared with 2020. By the end of 2021, there were 4 commercial production projects in the preparation sector, and another 8 preparation projects were in clinical phase III or NDA stage.
CGT ctdmo accumulates energy and improves the flexibility of business development
The company has continuously strengthened the testing, process development and production capacity of cell and gene therapy products. In 2021, the revenue of ctdmo sector reached 1.026 billion yuan, a year-on-year decrease of 2.79%. The business in China grew rapidly, and the revenue increased by 87%; It covers 74 development and production service projects, including 5 clinical phase II projects and 11 clinical phase III projects. In November 2021, 13000 ㎡ high-end testing laboratory in Philadelphia was put into operation. After being put into operation, the company's high-end testing capacity was tripled to further enhance the capacity of ctdmo platform Shanghai Lingang Holdings Co.Ltd(600848) cgt plant (15300 m2) was put into operation in October 2021, equipped with more than 200 independent suites and 6 complete carrier and cell production lines; Tessa-aav technology platform realizes the de plasmid production process, using Tessa ™ The AAV produced by vector is 10 times higher than that produced by plasmid based method. With the gradual production of production capacity and the superposition of technological innovation breakthroughs, we expect that 2022 may be a turning year for ctdmo business, and the growth rate of the sector is expected to exceed that of the industry.
Endogenous and external development, leading the industry's enabling innovation
The company adheres to the dual channel development of endogenous extension, continues to track cutting-edge science and technology, and seizes new development opportunities. Endogenously, on the one hand, the company continues to increase R & D investment, strengthen the service ability for new molecular types such as protac, oligonucleotide and polypeptide drugs, explore cutting-edge technologies such as artificial intelligence and automatic laboratory, and improve the efficiency of drug R & D; On the other hand, we will continue to strengthen the construction of production capacity. In 2025, the second production base built by Hequan in the United States is expected to be officially put into operation. In 2021, yaomingshengji's Philadelphia base in the United States and Taixing, Wuxi oral and sterile filling preparation plants will be put into operation. In terms of extension, oxgene was acquired in March 2021 to obtain unique Tessa technology and lentivirus xlenti solution, leading the development of global CGT technology; In February 2021, kuwei GMP preparation base in Switzerland was acquired to layout the first European production capacity and cover global customers.
Profit forecast
Due to the continuous development of the company's unique integrated crdmo and ctdmo business model and the rapid growth of the company's performance, we expect the company's operating revenue to be 38.580/46.361/58.498 billion yuan from 2022 to 2024 (compared with 28.981/37.936 billion yuan from 2022 to 2023); The net profit attributable to the parent company was 86.58/106.01/13.5 billion yuan (originally 5.692/7.421 billion yuan from 2022 to 2023); The corresponding EPS is 2.93/3.59/4.57 yuan / share (the original 20222023 is 1.93/2.51 yuan / share), maintaining the buy rating.
Risk tips: the number and growth of orders are less than expected, the release of production capacity is less than expected, the impact of exchange rate fluctuations on performance, the risk of investment income fluctuations, and the risk of core personnel loss.
