On March 25, Porton Pharma Solutions Ltd(300363) ( Porton Pharma Solutions Ltd(300363) ) disclosed the annual report of 2021. In 2021, the company achieved an operating revenue of 3.105 billion yuan, a year-on-year increase of 50%, and the revenue scale reached a record high; The net profit attributable to the shareholders of the listed company was 524 million yuan, a year-on-year increase of 61%; The net profit after deducting non-profit was 503 million yuan, an increase of 74% year-on-year; The gross profit margin and net profit margin of the company were 41.36% and 15.32% respectively, basically the same as last year; It is proposed to distribute a cash dividend of 1.93 yuan (including tax) for every 10 shares.
Porton Pharma Solutions Ltd(300363) is a leading pharmaceutical contract customization R & D and production enterprise (cdmo). It is committed to becoming the most open, innovative and reliable pharmaceutical service platform in the world. It is mainly committed to providing customized R & D and customized production services of APIs, preparations and biopharmaceuticals for global pharmaceutical companies and new drug R & D institutions throughout the life cycle from preclinical to clinical trials to drug listing, Including but not limited to process route design, development and optimization, analysis method development, process and analysis verification, process safety assessment, quality research, laboratory small-scale test, pilot test, commercial production, etc.
By the end of the reporting period, Porton Pharma Solutions Ltd(300363) has served more than 600 customers and delivered nearly 1800 projects. The service terminal drugs include antiviral, anti-tumor and immune function regulation, anti infection, nervous system, cardiovascular, digestive tract and metabolism, rare diseases and other major disease treatment fields.
During the reporting period, the contribution of Porton Pharma Solutions Ltd(300363) revenue mainly came from the cdmo business of API in the core business segment, realizing an operating revenue of 3.069 billion yuan, a year-on-year increase of 51%. The cdmo business of preparations has achieved a breakthrough of “from 0 to 1” and achieved an operating revenue of RMB 2016 million. The cdmo business of gene cell therapy achieved an operating revenue of 13.87 million yuan, an increase of 897% over the same period last year.
From the perspective of customer location, the European market, as the largest market of the company, achieved a year-on-year increase of 40% in operating revenue in 2021; The second and third largest markets are North America and China respectively. During the reporting period, the operating revenue increased significantly by 71% and 110% respectively.
Preparation cdmo business and gene cell therapy cdmo business are strategic new businesses of Porton Pharma Solutions Ltd(300363) and are still in the period of capacity-building although they have started to realize revenue in the reporting period. During the reporting period, the above two new businesses reduced the net profit of the company’s consolidated statements by about 106 million yuan. In addition, during the reporting period, the three participating companies in the company’s strategic layout were still in the stage of loss,
The total decrease in the net profit of the company’s consolidated statements is about 31 million yuan. Excluding the above effects, in 2021, the company realized a net profit attributable to shareholders of listed companies of 661 million yuan, an increase of about 80% year-on-year.
In terms of expenses, Porton Pharma Solutions Ltd(300363) while increasing resource investment, it continues to optimize the cost structure, taking into account business needs and the improvement of business efficiency. In 2021, the company’s period expenses totaled 649 million yuan, with a year-on-year increase of 28.55%, but the period expense rate decreased by 3.47 percentage points to 20.89%, reflecting the scale effect brought by the rapid growth of business.
Data show that the company’s R & D expenditure last year was 264 million yuan, a year-on-year increase of 67.15%; The R & D expense rate was 8.50%, an increase of 0.88 percentage points year-on-year. On the one hand, in 2021, the company’s R & D personnel increased by 52%, and the salary of R & D personnel increased by 62%; On the other hand, with the expansion of the company’s business scale and the gradual project delivery of preparation cdmo and gene cell therapy cdmo, the costs of raw materials and consumables related to R & D increased by 122%.
According to the performance forecast for the first quarter of 2022 disclosed on the same day, Porton Pharma Solutions Ltd(300363) said that benefiting from the continued high prosperity of cdmo industry, the company’s customer pipeline and product pipeline have been continuously expanded and enriched. In the first quarter of 2022, the company’s orders on hand increased strongly, and the major orders received by the company in the early stage were delivered successively during the reporting period. The company is expected to achieve an operating revenue of 1.357 billion yuan – 1.466 billion yuan, a year-on-year increase of 150% – 170%.
The performance forecast shows that with the strong growth of operating revenue, the company continues to improve its R & D technology capacity and delivery capacity. In the first quarter of 2022, the company is expected to realize a net profit attributable to shareholders of listed companies of RMB 326 million – 344 million, with a year-on-year increase of 270% – 290%; It is estimated that the net profit attributable to the shareholders of the listed company after deducting non recurring profits and losses is 324 million yuan – 339 million yuan, with a year-on-year increase of 330% – 350%.
For investors, the most concerned is the cooperation with Pfizer. According to the announcement in February this year, Porton Pharma Solutions Ltd(300363) received a new batch of purchase orders from Pfizer Ireland pharmaceuticals under Pfizer Inc. (Pfizer), a multinational pharmaceutical company. The company will provide contract customized R & D and production (cdmo) services for it, and the order delivery time is 2022. As of the disclosure date of the announcement, the total amount of newly obtained orders was 681 million US dollars, exceeding 50% of the audited operating revenue of the company in the latest fiscal year.
