\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 59 Pharmaron Beijing Co.Ltd(300759) )
Key investment points
Event: the company released its annual report for 2021 and achieved an operating revenue of 7.44 billion yuan, a year-on-year increase of 45%; The net profit attributable to the parent company was 1.66 billion yuan, a year-on-year increase of 41.7%; The net profit deducted from non 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%.
Revenue growth was strong, and the QoQ growth trend continued. Quarter by quarter, 2021q4 achieved operating revenue of 2.14 billion yuan (+ 38.4%), net profit attributable to parent company of 620 million yuan (+ 62%), net profit attributable to non parent company of 410 million yuan (+ 110%), adjusted net profit attributable to parent company of non IFRS of 410 million yuan (+ 37.1%), with continuous high-speed growth in a single quarter. We believe that the main reasons are: 1) the advantages of the whole process and integrated layout of the company are prominent, and the scale effect and profitability are continuously improved; 2) The four business sectors continued to make efforts, the mature sectors developed strongly, and the layout of emerging businesses accelerated.
The rapid growth of various businesses, the exchange rate and the cultivation of new businesses affect the adjusted non IFRS profits. In 2021, the laboratory service revenue reached 4.57 billion yuan, a year-on-year increase of 41.1%; CMC service revenue reached 1.75 billion yuan, a year-on-year increase of 42.9%; The revenue of clinical cro services was 960 million yuan, with a year-on-year increase of 52%; Macromolecule and CGT services realized a revenue of 150 million yuan, a year-on-year increase of 466.6%, and the performance broke out the expectation of supermarkets. The exchange rate of USD against RMB in 2021 decreased by 6.5% compared with that in 2020, and the relatively low gross profit margin in the investment stage of emerging businesses had a certain impact on the growth of the company’s revenue and profit.
The layout of emerging businesses continues to accelerate, and the new capacity is expected to be released rapidly. 1) China macromolecular business: it is estimated that Ningbo second Park Phase I will undertake macromolecular GMP production service project in 2023h1 with an area of nearly 70000 square meters; 2) Overseas CGT business: the British Pharmaceutical Biology UK (ABL) acquired in 2021q2 is still in the process of introduction and digestion, resulting in losses in the company’s CGT sector. However, the M & A integration of absorption and ABL is expected to help the company build core advantages in high boom CGT businesses such as laboratory services, analysis and testing and cdmo, and the loss is expected to narrow in 2022; 3) CMC business: 40000 square meters in phase III of Tianjin, China and phase II of Ningbo first park have been put into operation successively; Shaoxing phase I production capacity of 200 cubic meters has been released in January 2022, and the remaining 400 cubic meters are expected to be put into operation in 2022q2; In overseas business, the company acquired the UK cramlington production base in January 2022, increasing production capacity by more than 100 cubic meters. Overall, the company’s businesses continued to accelerate the layout.
Profit forecast and rating. We estimate that the net profit attributable to the parent company from 2022 to 2024 will be 2.3 billion yuan, 3.18 billion yuan and 4.32 billion yuan respectively, and the EPS will be 2.90 yuan, 4.01 yuan and 5.44 yuan respectively, corresponding to the current stock price valuation of 40 times, 29 times and 21 times respectively, maintaining the “buy” rating.
Risk tip: the number of orders fell or fluctuated, the production capacity was put into operation less than expected, and the business expansion was less than expected.
