\u3000\u30 Guangdong Tengen Industrial Group Co.Ltd(003003) 63 Porton Pharma Solutions Ltd(300363) )
Porton Pharma Solutions Ltd(300363) release the annual report of 2021 and the performance forecast of the first quarter of 2022. In 2021, the company achieved an operating revenue of 3.105 billion yuan, a year-on-year increase of 48.9%; The net profit attributable to the parent company was 524 million yuan, a year-on-year increase of 61.5%; Deduct non net profit of 503 million yuan, an increase of 74.4% year-on-year, and realize EPS of 0.97 yuan.
The company achieved a year-on-year increase of 8.4 billion yuan in operating income, which was 1.04 billion yuan alone; The net profit attributable to the parent company was 163 million yuan, a year-on-year increase of 91.9%; Deduct non net profit of 150 million yuan, an increase of 118.7% year-on-year; EPS 0.30 yuan. In 2022q1, the company expects to achieve a year-on-year increase of 150% – 170% in operating revenue; The net profit attributable to the parent company increased by 270% – 290% year-on-year; Net profit after deduction of non profits increased by 330% – 350% year-on-year.
Viewpoint: rapid growth for 12 consecutive quarters, and the company’s business development continues to exceed expectations
The company’s revenue and profit increased rapidly in 2021. After excluding the loss of new business, the company’s profitability continued to improve. The gross profit margin and net profit margin of the company were 41.36% and 15.32% respectively, basically the same as last year, and the net profit attributable to the parent company was 524 million yuan, a year-on-year increase of 61.49%. Profit side exchange has a positive impact on the company. Considering the loss of new business, the actual endogenous growth is about 80% after excluding the impact of new business.
From the perspective of commercialization, cro provides obvious impetus for subsequent business recovery. The company’s CMO revenue in 2021 was 2.039 billion yuan, an increase of 41% over the same period last year (1.449 billion yuan). Cro revenue was 973 million yuan (230 million yuan for J-star team and 743 million yuan for China team), an increase of 72% over the same period last year (565 million yuan). The overall business structure of the company was similar to that of the previous year, and the subsequent growth momentum was sufficient. From the perspective of customer structure, continuously expand customer pipeline by continuously improving the depth and breadth of customer coverage.
The company continued to increase market promotion and business expansion, introducing 113 new customers, 265 customers in total, 181 Chinese team service customers and 84 J-star team service customers, with a balanced customer structure.
From the perspective of order projects, the construction of project pipelines has been strengthened, and the diversion synergy of various business lines has emerged. The 20 projects served by the company successfully entered the next development stage, and the 2 innovative drugs (4 projects) served were approved for listing during the reporting period. The company officially launched the collaborative service of “drug substance (DS) + Preparation (DP)”, with 13 collaborative projects between DS and DP during the reporting period, further opening up the end-to-end service chain.
The large order of US $900 million proves the strength of the company and helps the company’s performance to a new level. The company received purchase orders from Pfizer’s Pfizer Ireland pharmaceuticals totaling US $900 million. This cooperation is a proof of the company’s ability and reflects the stickiness of service and the leading advantage of business.
The cdmo business of gene cell therapy is emerging and will release elasticity in the medium and long term. In 2021, 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.
The business is still in the period of capacity-building. At present, it is fully promoting the construction of platforms such as plasmid, cell therapy, gene therapy, oncolytic virus, nucleic acid therapy and live bacterial therapy, so as to prepare for the release of income generating elasticity in the medium and long term. Profit forecast and investment suggestions. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 1.286 billion yuan, 1.617 billion yuan and 1.957 billion yuan respectively, with an increase of 145.4%, 25.8% and 21.1% respectively. EPS is 2.36 yuan, 2.97 yuan and 3.60 yuan respectively, and the corresponding PE is 40x, 32x and 26x respectively. We are optimistic about the long-term development of the company and maintain the “buy” rating.
Risk warning: commercial orders, especially large orders, are subject to fluctuation risk; The strategic expansion of new business is less than expected
