\u3000\u3 China Vanke Co.Ltd(000002) 821 Asymchem Laboratories (Tianjin) Co.Ltd(002821) )
Event summary
The company released its annual report for 2021 on March 30: the operating revenue was 4.639 billion yuan, a year-on-year increase of 47%; The net profit attributable to the parent company was 1.069 billion yuan, a year-on-year increase of 48%; Deducting the net profit not attributable to the parent company of 935 million yuan, with a year-on-year increase of 45%; The gross profit margin and net profit margin were 44.33% and 23.05% respectively, unchanged from the same period last year; The total number of employees reached 7126, an increase of about 30% year-on-year.
Key investment points
Small molecule cdmo: customer coverage continues to deepen, and new technologies maintain industry leadership
Relying on the world’s leading R & D platform and stable production capacity supply, the company continued to improve its competitiveness, significantly increased its revenue scale and market share, and achieved a revenue of 4.238 billion yuan in 2021, a year-on-year increase of 46%; There are 328 projects (+ 107), including 55 clinical phase III projects (+ 13) and 38 Commercial phase projects (+ 6). In terms of customers, the company has participated in more than 30% of the phase II or phase III small molecule candidate drugs of the five major multinational pharmaceutical enterprises in the United States, the growth rate of the Chinese market has reached 64%, the number of NDA orders in hand has exceeded 30, and the income of overseas small and medium-sized pharmaceutical enterprises has increased by 51% year-on-year. In the future, the company will promote the American biotech market through snapdragon and Boston center; In terms of production capacity, the traditional reactor is nearly 4700m3 at the end of 2021, and it is expected to increase by 46% (6862m3) at the end of 2022. In February 2022, the company passed the proposal of wholly controlling snapdragon equity, forming a synergistic effect with the continuous technology platform that has been laid out for more than 10 years, jointly promoting the R & D and application of new technologies, and the application of continuous reaction continues to increase. We believe that the company’s customer coverage continues to deepen, new technologies remain the industry leader, and the superimposed capacity expands rapidly. The company’s performance is expected to maintain rapid growth in the future.
New services: capacity building has been rapidly promoted, and the layout in multiple fields has entered the harvest period
Relying on the customer trust, brand awareness and operation management system accumulated in the field of small molecules, the company quickly promoted the development of new businesses such as preparations, chemical macromolecules, biosynthetic technology and biological macromolecules. In 2021, the revenue was nearly 400 million yuan, a year-on-year increase of 67%, and 327 projects were completed. In terms of chemical macromolecules, the revenue increased by 42% year-on-year in 2021, and 23 new projects were undertaken, with a total of more than 20 projects after II. The oligonucleotide business covers Aso, siRNA and other fields. At the same time, multiple laboratory scale and pilot scale oligonucleotide synthesizers were independently designed and processed to rapidly expand production capacity; In the preparation sector, the revenue increased by 80% year-on-year in 2021, the orders of overseas customers such as the United States and South Korea accounted for more than 40%, 40 API + Preparation orders, and the GMP workshop of sterile eye drops was put into use, with an annual production capacity of 10 million; In terms of biosynthesis technology, the enzyme technology platform has been relatively mature. At the same time, it undertakes the construction of core technical capabilities in the pharmaceutical fields such as protein, polypeptide and nucleic acid. The orders cover engineering enzymes, recombinant proteins, pharmaceutical enzymes and other sectors.
Advanced therapeutic biological macromolecule cdmo: increasing capital and shares, introducing war investment, and strengthening the certainty of future growth
The company’s advanced therapeutic biological macromolecular cdmo sector mainly includes R & D and production outsourcing services in the clinical and commercial production stages of mAb, recombinant protein, ADC, mRNA and plasmid. The number of personnel in this sector exceeds 200. In 2021, it achieved a revenue of 2.8705 million yuan, a net profit loss of 325799 million yuan, and a revenue of 4.4186 million yuan from January to February 2022. In terms of production capacity, the construction of multiple R & D and production bases is advancing rapidly. Shanghai Jinshan has established R & D and pilot test centers, mainly providing DNA recombination products and ADC cdmo services. Suzhou base undertakes the R & D and pilot test centers of plasmid and mRNA cdmo, and Shanghai Fengxian undertakes the R & D and commercial production of antibody drugs and ADC. On March 25, the company announced the introduction of external investors and signed the investment agreement with Hillhouse venture capital and Haihe Asymchem Laboratories (Tianjin) Co.Ltd(002821) fund. The total capital increase of each investor is no more than RMB 2.534 billion. The company will enhance its capital strength, enhance its overall competitiveness and accelerate the development of advanced therapeutic biological macromolecule cdmo business through this capital increase.
Profit forecast
The company’s traditional business remains in the leading position, and the new business has entered the performance cashing period. We expect the company’s operating revenue to be 12.456/14.283/17.608 billion yuan from 2022 to 2024 (compared with 7.259/9.286 billion yuan from 2022 to 2023); The net profit attributable to the parent company is RMB 2.878/33.08/4.085 billion (originally RMB 1.640/2.088 billion from 2022 to 2023); The corresponding EPS is 10.89/12.52/15.45 yuan / share (originally 6.7/8.53 yuan / share from 2022 to 2023), maintaining the buy rating.
Risk warning: order volatility risk; Risk of fluctuations in the market demand of innovative drugs served; Risk that the progress of new business is less than expected; Exchange rate fluctuation risk
