\u3000\u3 China Vanke Co.Ltd(000002) 821 Asymchem Laboratories (Tianjin) Co.Ltd(002821) )
Event: the company released its annual report for 2021, realizing an operating revenue of 4.64 billion yuan, a year-on-year increase of 47.3% (excluding the impact of exchange rate, an increase of 56.1%); The net profit attributable to the parent company was 1.07 billion yuan, a year-on-year increase of 48.1%; The non net profit attributable to the parent company was 940 million yuan, with a year-on-year increase of 45.2%.
The explosion of orders and the release of production capacity promoted the rapid growth of performance. A number of new orders signed by the company continued to exceed expectations, which verified the high growth of the industry leader. By the end of 2021, the total number of orders on hand was US $1.898 billion, a year-on-year increase of 320%; The construction of production capacity continues to accelerate. By the end of 2021, the volume of the company’s traditional batch reactor reached 5000 cubic meters. By quarter, 21q4 achieved an operating revenue of 1.72 billion yuan (+ 60.8%, an increase of 66.6% excluding the impact of exchange rate); The net profit attributable to the parent company was 370 million yuan (+ 73.5%); The non net profit attributable to the parent company was 340 million yuan (+ 80.9%), the growth of revenue was accelerated, and the growth rate of profit side was significantly higher than that of revenue side.
China’s business has entered the harvest period, overseas cooperation has continued to deepen, and small molecule cdmo has a strong momentum. In 2021, the company’s small molecule cdmo realized a revenue of 4.24 billion yuan, a year-on-year increase of 45.6%; There were 328 revenue recognition projects and 290 clinical projects, including 55 clinical phase III projects and 38 commercial projects. The clinical and commercial revenue of small molecules increased by 37.6% and 51.7% respectively. 1) China market: the company gradually implemented China’s NDA and commercialization projects in the later stage, and China’s revenue increased by 64.4% year-on-year; 2) Overseas market: the company’s key customer R & D pipeline coverage continues to deepen, and more than 30% of the five major multinational pharmaceutical companies in the United States have participated in phase II / III clinical small molecule candidate drugs.
Emerging businesses blossom at multiple points and open the ceiling of long-term development. In 2021, the company’s emerging business revenue was nearly 400 million yuan, a year-on-year increase of 67.4%, and 327 emerging service projects were completed. 1) Chemical macromolecules: in 2021, the revenue increased by 42.5% year-on-year, 14 new customers were developed, 23 new projects were undertaken, and more than 20 projects were promoted after phase II; 2) Preparation: sustained and rapid growth, with revenue increasing by 80.3% year-on-year in 2021. More than 40% of them come from overseas customers and undertake 40 API + Preparation projects; 3) Clinical cro: in 2021, the revenue increased by 83.7% year-on-year, and more than 150 project contracts were signed, including more than 70 innovative drug projects and nearly 30 cell therapy drug projects. 4) Biological macromolecules: in 2021, the company placed an order of 130 million yuan. It is expected to complete the construction of 2x2000l antibody stock solution production capacity and 2x500l ADC commercial production capacity in 2022h1; Suzhou process development laboratory has the ability to undertake R & D orders.
Profit forecast and rating. We expect that the EPS from 2022 to 2024 will be 9.13 yuan, 12.57 yuan and 16.42 yuan respectively, corresponding to 41 times, 30 times and 23 times of the current stock price valuation respectively, maintaining the “buy” rating.
Risk warning: sales are less than expected; Risk of centralized purchase; Risk that the progress of products under development is less than expected
