Pharmablock Sciences (Nanjing) Inc(300725) depth report: grasp the core technology of building blocks and deepen the layout of back-end cdmo

\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 25 Pharmablock Sciences (Nanjing) Inc(300725) )

Pharmablock Sciences (Nanjing) Inc(300725) in the field of molecular blocks, its competitiveness not only includes the technical ability to synthesize molecular blocks, but also includes an innovative business model based on the research of journals, databases and other information to establish industry cognition, design and synthesize a series of popular molecular blocks in advance, solve the pain points of customer research and development, and obtain customer oriented product orders

Due to the change of drug properties, approval process and customer structure, the chemical medicine cdmo industry pays more and more attention to the capabilities of new orders, high activity API workshop, chemical synthesis, preparation technology, production operation and integrated layout. Pharmablock Sciences (Nanjing) Inc(300725) currently has certain advantages in the subdivided fields of chemical synthesis capacity and integrated layout, and the capability layout is in line with the development trend of chemical medicine cdmo industry.

With the gradual improvement of the company's large-scale production, corresponding talent construction, capacity upgrading, capacity expansion and process upgrading, more and more projects can be retained in the pipeline and gradually form a relatively stable funnel-shaped pipeline echelon. It is expected that in the future, with the gradual increase of commercial projects, the impact of a single project on performance growth is expected to gradually reduce, the performance fluctuation is reduced, and the growth rate tends to be stable.

The case of Yaojie Ankang proves that Pharmablock Sciences (Nanjing) Inc(300725) has the ability to carry out new drug business. The company's new drug business is still in the exploratory state of mode. It is believed that both transfer mode and incubation mode will become an important diversion source of the company's cdmo business.

Profit forecast and investment rating: it is estimated that the operating revenue of the company from 2021 to 2023 will be 1.199, 1.620 and 2.336 billion yuan, and the net profit attributable to the parent company will be 493, 380 and 563 million yuan, corresponding to 39x, 51x and 34x PE.

First coverage, with a "buy" rating.

Risk tips:

1. Sino US trade war friction; 2. Covid-19 epidemic intensified; 3. The competition pattern of chemical cdmo industry has deteriorated; 4. Pharmablock Sciences (Nanjing) Inc(300725) cdmo capacity release is less than expected; 5. Pharmablock Sciences (Nanjing) Inc(300725) cdmo orders were not accepted as expected

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