\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 59 Pharmaron Beijing Co.Ltd(300759) )
Event: the company released its annual report for 2021, realizing an operating revenue of 7.444 billion yuan (+ 45.00%); The net profit is RMB 1.668 billion (+ 1.668%); Deduct non net profit of 1.341 billion yuan (+ 67.46%).
The advantageous areas have grown steadily, and the layout of new businesses is becoming more and more mature. In terms of business, the laboratory service business achieved an operating revenue of 4.566 billion yuan (+ 39.94%), with a gross profit margin of 43.47%, an increase of 0.70 percentage points year-on-year. The increase in profitability was mainly due to the increase of 46.6% in the proportion of Bioscience business income with higher gross profit margin, an increase of 5.8 percentage points year-on-year. By the end of 2021, the number of laboratory service employees was 7136 (+ 28.41%), and it is expected that the increase in the number of personnel will continue to drive the growth of laboratory service revenue. CMC's business income was 17.46 yuan (+ 42.9%), and its gross profit margin was 34.92%, an increase of 2.20 percentage points year-on-year. In 2021, the company's services involved 1013 drug molecules or intermediates (+ 37.08%), including 754 preclinical projects (+ 267) and 224 clinical phase I-II projects (+ 22). We believe that the continuous increase in the number of early-stage projects is expected to continue to guide projects in the later stage of clinical and commercialization. With the production capacity of Shaoxing Plant Phase I Project (200 m3 reactor has been put into production in early 2022, and the remaining 400 m3 reactor is expected to be completed and put into use in the middle of 2022), Tianjin plant phase III project and Ningbo first Park Phase II project are successively put into use (nearly 1000 CMC service personnel can be added), the company's ability to undertake clinical stage projects and commercial stage projects will be greatly improved in the future, CMC business is expected to continue to maintain rapid growth. The revenue of clinical research service business was 956 million yuan (+ 52.0%). The company strengthened the improvement of clinical research service ability, strengthened the ability in quantitative pharmacology and pharmacovigilance and improved the clinical R & D service platform through the acquisition of Enyuan medicine and detaimai. Macromolecule and GCT service business achieved an operating revenue of 151 million yuan. With pharmaronbiologicsuk starting to undertake external orders and the gradual release of the production capacity of Ningbo second Park Phase I project in 2023, it is expected to become a new performance growth point in the future.
Capital expenditure accelerated and production capacity continued to advance. In 2021, the company's capital expenditure for internal construction was 2.093 billion yuan (+ 59%), the highest level in recent years. By the end of 2021, the company's fixed assets were 3.923 billion yuan (+ 44.07%), and the construction in progress was 1.374 billion yuan (+ 67.41%). The acceleration of the company's capital expenditure and the steady expansion of laboratory services and CMC capacity will help support future performance growth.
Profit forecast and Valuation: we estimate that the company's revenue from 2022 to 2024 will be RMB 9.827 billion, RMB 12.587 billion and RMB 16.029 billion respectively, with a year-on-year increase of 32.0%, 28.1% and 27.4%; The net profit attributable to the parent company was 2.164 billion yuan, 2.791 billion yuan and 3.564 billion yuan respectively, with a year-on-year increase of 30.3%, 29.0% and 27.7%. Based on the closing price on March 28, the corresponding PE was 42, 33 and 26 times respectively. The "buy" rating was given for the first time.
Risk tip: the prosperity of the industry is declining; Major adverse changes have taken place in the division of labor in the global pharmaceutical industry chain.
