\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 59 Pharmaron Beijing Co.Ltd(300759) )
Event: on March 27, 2022, the company released its annual report for 2021. In 2021, the company achieved a revenue of 7.444 billion yuan, a year-on-year increase of 45.00%; The net profit attributable to the parent company was 1.661 billion yuan, a year-on-year increase of 41.68%; The net profit attributable to the parent company after non deduction was 1.341 billion yuan, a year-on-year increase of 67.46%, and the performance growth was in line with expectations.
In 2021, the net profit attributable to the parent company increased by 42% year-on-year, and the performance growth was in line with expectations:
On the revenue side, the company achieved a revenue of RMB 7.444 billion in 2021, with a year-on-year increase of 45.00%. Among them, laboratory services, CMC services, clinical research services, macromolecules, cells and gene therapy services achieved revenue of 4.566 billion yuan (+ 41.09%), 1.746 billion yuan (+ 42.90%), 956 million yuan (+ 51.96%) and 151 million yuan (+ 466.58%) respectively. On the profit side, the company realized a net profit attributable to the parent company of RMB 1.661 billion in 2021, with a year-on-year increase of 41.68%; The net profit attributable to the parent company after non deduction was 1.341 billion yuan, a year-on-year increase of 67.46%, and the performance growth was in line with expectations.
Laboratory services are globally competitive and the business is expected to continue to grow steadily:
The company’s laboratory services are in a leading position in the world, and the business is expected to continue to develop steadily. In terms of team size, the scale of laboratory service team has been expanding. By the end of 2021, the number of employees in this business has reached 7136, a year-on-year increase of 28%; In terms of capacity construction, the 120000 square meter laboratory in the first part of Ningbo No. 1 park has been put into use in 2021q1, the 42000 square meter laboratory in the second part of phase II project has started internal installation, and the 140000 square meter laboratory in the first phase of Ningbo No. 3 Park has been constructed and is expected to be put into use in H1 of 2024. The company is in drug safety evaluation The service capacity of animal experiments such as drug metabolism, pharmacokinetics and pharmacology is expected to be continuously enhanced; In terms of profitability, the gross profit margin was 43.47% in 2021, an increase of 0.7 percentage points year-on-year, which further highlighted the scale effect of the business.
With the continuous launch of new capacity, CMC business is expected to enter a stage of rapid development:
CMC business has sufficient projects and new production capacity is gradually put into operation. This business is expected to continue to develop rapidly. In terms of projects, by the end of 2021, there were 754, 224, 30 and 5 projects in preclinical, clinical phase I-II, clinical phase III, process validation and commercialization stages respectively, with sufficient projects and obvious funnel effect; In terms of production capacity, the third phase of Tianjin plant and the second phase of Ningbo first park have been put into use successively, and the first phase of Shaoxing plant has been rapidly promoted (200 cubic meters will be put into operation in early 2022, and 400 cubic meters are expected to be put into use in 2022h1); In terms of service team, by the end of 2021, the number of CMC service employees had reached 2621, a year-on-year increase of 36%; In terms of profitability, the gross profit margin of CMC business of the company was 34.92% in 2021, with a year-on-year increase of 2.20 percentage points. With the optimization of project structure and the improvement of capacity utilization in the future, the gross profit margin of the business is expected to be further improved.
Build an integrated clinical research service platform, and the clinical research service is in the stage of rapid development:
The company is committed to building an integrated clinical research service platform. Pharmaron Beijing Co.Ltd(300759) (Chengdu) Clinical Research Service Co., Ltd. was established in May 2021, which deeply integrates clinical R & D services including clinical operation, clinical site management, statistics, regulatory registration, medical affairs, quantitative pharmacology, subject recruitment, biological sample analysis, pharmacovigilance, medical device services, etc. In 2021, the business realized a revenue of 956 million yuan (+ 51.96%), and the business is in a period of rapid development.
The macromolecule, cell and gene therapy business has developed rapidly and strengthened the medium and long-term strategic layout:
The company accelerated the layout of macromolecular, cell and gene therapy services through self construction and M & A. In terms of self construction, the company continues to promote the phase I project of Ningbo second park. As the company’s macromolecular drug development and production service base, the project is expected to undertake macromolecular GMP production service project in 2023h1; In terms of M & A, 2021q2 company completed the acquisition of pharmaron biology UK. At present, pharmaron biology UK has gradually begun to undertake external orders.
Timely release a new round of equity incentive to lay a solid foundation for the medium and long-term development of the company:
Recently, the company issued a new round of stock incentive plan, which plans to grant 1548800 shares to 403 people, including core managers, middle / grass-roots managers and technical backbones, at the price of 58.38 yuan / share. The performance assessment objective of the equity incentive is: Based on the revenue in 2021, the revenue growth rate from 2022 to 2025 shall not be less than 20%, 40%, 60% and 80% respectively. The equity incentive fully binds the core backbone of the company and lays a solid foundation for the medium and long-term development of the company.
Investment suggestion: it is estimated that the net profit of the company from 2022 to 2024 will be 2.253 billion yuan, 3.052 billion yuan and 4.096 billion yuan respectively, with a year-on-year increase of 35.6%, 35.5% and 34.2% respectively. Give an investment rating of buy-a.
Risk warning: the increase of order quantity does not meet the expectation; The launch of new production capacity did not meet expectations; The intensification of market competition leads to the decline of order price; The prosperity of the industry is lower than expected.
