\u3000\u3 China Vanke Co.Ltd(000002) 821 Asymchem Laboratories (Tianjin) Co.Ltd(002821) )
Event: Asymchem Laboratories (Tianjin) Co.Ltd(002821) released the annual report of 2021. The annual operating revenue of the company was 4.639 billion yuan, a year-on-year increase of 47.28%, and the growth rate excluding the impact of exchange rate was 56.13%; The net profit attributable to the parent company was 1.069 billion yuan, a year-on-year increase of 48.08%; The net profit deducted from non parent company was 935 million yuan, with a year-on-year increase of 45.22%.
Comments:
Revenue growth in different sectors and markets was strong, and high orders on hand guaranteed future performance. In terms of business segments, the company’s traditional small molecule business accelerated, realizing RMB 4.238 billion in the whole year, with a year-on-year increase of + 45.63% and a gross profit margin of 47.45%, including RMB 1.723 billion in clinical small molecule business, with a year-on-year increase of + 37.58% and a gross profit margin of 40.75%, and RMB 2.515 billion in small molecule commercial business, with a year-on-year increase of + 51.70% and a gross profit margin of 47.59%; The emerging business segment achieved a revenue of 398 million yuan, a year-on-year increase of + 67.43% and a gross profit margin of 39.58%. In terms of revenue sources, the company achieved a revenue of 2.945 billion yuan for large overseas pharmaceutical enterprises, a year-on-year increase of + 41.46%; The income of overseas small and medium-sized pharmaceutical enterprises was 1.052 billion yuan, a year-on-year increase of + 50.99%; The revenue of Chinese pharmaceutical enterprises was 641 million yuan, a year-on-year increase of + 72.95%, and the customer structure continued to be optimized. Driven by the high prosperity of the industry and the strong competitiveness of the company, as of the disclosure date of the announcement, the total amount of orders on hand of the company was 1.898 billion yuan, a year-on-year increase of 320%.
Small molecule cdmo: technology driven development, optimization of project and customer structure, substantial improvement of production capacity and continuous improvement of competitiveness. In 2021, by virtue of continuous reaction and biological enzyme catalysis technology, the company solved research and production problems for many customers and realized “cost reduction and speed-up”. The production capacity has also been greatly improved. By the end of 2021, the traditional reactor was nearly 4700m3, which was nearly 5000m3 as of the disclosure date. At the same time, the application of continuous technology has been vigorously promoted, and the workshop area has been expanded three times compared with that in 2020. Taking technology as the starting point and capacity as the support, the company continued to deepen and expand customers at home and abroad. During the reporting period, the projects and income from overseas large customers, small and medium-sized customers and Chinese customers increased rapidly. There were 328 projects with revenue recognized in the whole year (235 pre clinical and early stage, 55 clinical phase III and 38 commercialization). The proportion of later projects was high and the funnel effect was obvious.
Emerging businesses blossom at multiple points. In 2021, the company achieved good performance in emerging sectors such as chemical macromolecules, preparations, biosynthesis technology, clinical research services and biological macromolecule cdmo: the chemical macromolecule business developed 14 new customers and undertook 23 new projects; In the preparation business, the progress of sterile eye drops was gratifying, the number of orders increased by 300% year-on-year, the GMP workshop was put into use, and the annual production capacity was more than 10 million; The biosynthesis technology part completed the cGMP upgrading of the plant, and undertook the process characterization project of BLA and the R & D and production project in the later clinical stage for the first time; Clinical research services have reached new highs, with more than 150 new projects and orders in hand exceeding 300 million yuan. The subsidiary Keno pharmaceutical and the newly acquired digital system company yipukono have good coordination and continue to consolidate the integrated service capacity; The biological macromolecular cdmo has orders of 130 million yuan, and the continuous investment in production capacity, personnel and technology improves the service capacity.
The four major technology platforms complement each other and enable the development of technical talents. In 2021, the company invested 387 million yuan in R & D, a year-on-year increase of 49.64%, with more than 3380 scientists and engineers. In order to maintain continuous technical competitiveness, the company has successively established four technical platforms CEPS CFCT CBST CIMT to provide multi-dimensional solutions for R & D and production.
Profit forecast and investment rating: we expect the company’s operating revenue to be RMB 11.048121.63/14.427 billion from 2022 to 2024, with a year-on-year increase of 138.2% / 10.1% / 18.6%; The net profit attributable to the parent company was RMB 2.901/29.25/3.463 billion respectively, with a year-on-year increase of 171.3% / 0.8% / 18.4%, corresponding to 34 / 34 / 29 times of PE from 2022 to 2024.
Risk factors: increased competition in the industry, decline in R & D investment and outsourcing demand in the pharmaceutical industry, China’s international policies, loss of core technicians and other risks.
