\u3000\u3 China Vanke Co.Ltd(000002) 821 Asymchem Laboratories (Tianjin) Co.Ltd(002821) )
Events
Excluding the impact of the annual report, the annual revenue increased by 3.0023 billion year-on-year to 4.6 year-on-year if the annual report was released, the annual revenue increased by 3.0023 billion year-on-year 4.6%; The net profit attributable to the parent company was 1.069 billion yuan, a year-on-year increase of 48.08%; The net profit attributable to the parent company after deducting non profits was 935 million yuan, with a year-on-year increase of 45.22%, and the performance achieved high growth. In addition, orders on hand amounted to US $1.898 billion, a year-on-year increase of 320%.
Brief comment
Small molecule cdmo business is growing rapidly, and the project structure is further optimized. The revenue of small molecule cdmo business was 4.238 billion yuan, a year-on-year increase of 45.63%. At the same time, the project structure has been continuously optimized and the funnel effect has become increasingly prominent. The company has 328 projects, including 235 pre clinical and early clinical projects, 55 clinical phase 3 projects and 38 commercial projects.
Strong growth in new business, multi sector synergies highlighted. The new business realized a revenue of nearly 400 million yuan, a year-on-year increase of 67.43%, and completed 27 projects, accounting for 8.57% from 2.19% in 2018. Among them, 1) the business income of chemical macromolecules increased by 42.48% year-on-year, 4 new customers were developed, 23 new projects were undertaken, and more than 20 projects after clinical phase 2. 2) The revenue of preparation business increased by 80.33% year-on-year, and more than 40% of the revenue came from overseas customers such as the United States and South Korea, undertaking 40 API + Preparation projects. 3) Clinical business revenue increased by 83.71% year-on-year, and more than 150 project contracts were signed, of which 70 were innovative drugs and 30 were cell therapy. The overall operation of the company shows a good trend of high growth and is optimistic about the future development potential of the company.
The industry has a high outlook and multi business coordinated development. We believe that CXO industry will maintain a high profile in the future, thanks to the global industrial chain transfer and the rise of China’s indigenous innovation. Asymchem Laboratories (Tianjin) Co.Ltd(002821) as the leader of cdmo in the industry, the newly signed and on hand orders are full, the performance is uncertain, and the future development potential is great. At the same time, the company has arranged multiple business areas to form a one-stop collaborative development, such as small molecule cdmo business, preparation business, clinical business, macromolecule and CGT business, so as to accelerate the building of an integrated cdmo leader.
Investment advice
We expect the net profit attributable to the parent company from 2022 to 2024 to be RMB 2.515/2.561/2.745 billion, corresponding to 40 / 39 / 36 times of PE respectively, maintaining the “buy” rating.
Risk tips
The contract performance is less than expected, the sales of downstream new drug products is less than expected, the price of upstream raw materials increases, exchange rate fluctuations, environmental protection and safety production, new business expansion is less than expected, and the loss of core technology (business) personnel, etc
