\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 59 Pharmaron Beijing Co.Ltd(300759) )
The company released its 2021 annual report: in 2021, it achieved an operating revenue of 7.44 billion yuan, a year-on-year increase of 45.0%; The net profit attributable to the parent company was 1.66 billion yuan, a year-on-year increase of 41.7%; The net profit after non deduction from the parent company was 1.34 billion yuan, a year-on-year increase of 67.5%; After adjustment, the net profit attributable to the parent company of non IFRS was 1.46 billion yuan, a year-on-year increase of 37.4%.
The performance is in line with expectations, and the main business continues to grow strongly: if calculated at the exchange rate of the same period last year, the operating revenue performance during the reporting period is more brilliant (a year-on-year increase of 52.3%) and the gross profit margin is 38.7% (a year-on-year increase of 1.36 percentage points). In Q4 single quarter, the operating revenue and net profit attributable to the parent company were 2.14 billion yuan and 621 million yuan respectively, both continuing the month on month growth trend. We expect the company’s mature sector to continue to grow strongly, which verifies the strong demand for orders and the high prosperity of the industry, and reflects the company’s excellent R & D and production capacity of small molecule drugs throughout the whole process of drug discovery, preclinical, clinical development and commercialization.
While deeply cultivating old customers, we continue to broaden our ability circle: during the reporting period, the revenue contributed by repeated customers accounted for about 90%, and the service advantage of whole process integration is becoming more and more obvious. While the top 20 customers accounted for 33.75% (down 7.31 percentage points year-on-year), the average customer revenue increased by 19.21% year-on-year. While improving the stickiness of old customers, new customer groups (more than 800) were continuously introduced. During the reporting period, Britain and the United States had 10 operating entities with more than 1100 employees, and overseas subsidiaries accounted for 13.7% of the revenue. The internationalization strategy continued to be promoted.
Capital expenditure and team expansion injected new impetus to growth: during the reporting period, the capital expenditure of the company’s internal construction and extension M & A was 2.09 billion yuan (a year-on-year increase of 59.1%) and 1.44 billion yuan (a year-on-year increase of 30.6%). R & D, production technology and clinical service personnel increased to 13455 (a year-on-year increase of 36.9%). While increasing production capacity to meet the growth needs of existing businesses, the company has further improved its international service platform and focused on the development of new businesses, providing new impetus for the medium and long-term development of the company.
The rapid development of new business provides follow-up growth flexibility: during the reporting period, the macromolecular drug discovery service team further matured, the service revenue of macromolecular and cell and gene therapy laboratories in the United States increased rapidly, and the market share further improved. The newly acquired pharmaron biology UK has begun to undertake external orders. As the company’s macromolecular drug development and production service base (nearly 70000 square meters), the follow-up phase I project of Ningbo second park is expected to undertake macromolecular GMP production service projects in the first half of 2023, further improve the company’s integrated service map of the whole process of multi therapy drug research and development, and provide new momentum for subsequent growth.
Profit forecast and rating: we are optimistic about the sustained and rapid development of the company. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 2.06 billion yuan, 2.81 billion yuan and 3.8 billion yuan respectively, with a year-on-year increase of 23.9%, 36.5% and 35.4%; The corresponding PE is 45, 33 and 24 times respectively, maintaining the “buy” rating.
Risk warning: the epidemic affects the operation risk, the decline risk of demand for pharmaceutical R & D services, the loss risk of core technicians, and the risk of exchange rate changes.
