author | Miao Zhongjie
red weekly: 2021 Semiconductor Manufacturing International Corporation(688981) full capacity utilization was maintained throughout the year, and the operating revenue increased to 35.63 billion yuan from 27.47 billion yuan in the previous year; The net profit increased to 10.733 billion yuan from 4.332 billion yuan in the same period of last year; The net profit after deducting non-profit was 5.325 billion yuan, a year-on-year increase of 213.8% compared with 1.697 billion yuan in the same period of last year. Can this growth be continued?
Qiu Zheng: in 2021, the stable market stock demand and the incremental demand of emerging product markets, combined with the shutdown and shutdown caused by global epidemic and natural disasters, caused problems such as the overall supply of foundry capacity in 2021 and the bottleneck of existing capacity of chip supporting industry. The procurement cycle of the overall chip industry chain continued to lengthen, and the global foundry industry was in short supply. From the current actual situation, the global integrated circuit industry will face both challenges and opportunities in 2022. The overall production capacity of the industry will still be in short supply, but the demand in some application fields is slowing down, and the overall shortage of production capacity will gradually turn into structural shortage.
From the perspective of China, as the world’s largest manufacturing center, China’s integrated circuit products and technologies still need to rely on imports at this stage. The scale of China’s existing IC industry still does not match the actual IC demand, and there is still a large growth space for relevant enterprises in the industrial chain. As the Chinese mainland’s most advanced technology, largest and most complete professional wafer foundry enterprise, Semiconductor Manufacturing International Corporation(688981) has the leading technology manufacturing capability and capacity advantages. Although it is now listed by the US as a physical inventory, production and operation are facing some challenges for the time being, but there is still a lot of room for growth.
red weekly: Rongchang biology was listed this week. The operating revenue and net profit of the company in 2021 were 1.426 billion yuan and 276 million yuan respectively, while the operating revenue and net profit of the company from January to September 2021 were 115 million yuan and – 688 million yuan respectively, that is, the net profit of the company in the fourth quarter was as high as 964 million yuan. At present, the company has estimated a loss of 329 million yuan to 445 million yuan in the first quarter of 2022. Why does the company’s performance fluctuate so much?
Qiu Zheng: in August 2021, Rongchang biological reached a global exclusive license agreement with Seattle gene company, an international well-known biopharmaceutical enterprise, to develop and commercialize the vidicizumab products of Rongchang biological. According to the agreement, Rongchang biological authorizes Seattle gene to obtain the global development and commercialization rights and interests of vidicizumab outside Rongchang biological region (i.e. other Asian regions except Japan and Singapore). According to this agreement, Seattle gene needs to pay a down payment of US $200 million and a milestone payment of up to US $2.4 billion to Rongchang biological, Meanwhile, Rongchang biology will receive a gradient sales commission from the high single digit to more than 10% of the net sales of vidicizumab in the Seattle gene region. In October 2021, Rongchang biology has received the above-mentioned down payment of US $200 million, which is the main reason for the sharp increase in the company’s net profit in the fourth quarter.
So far, Rongchang biology has more than 10 candidate biological drug products in the stage of commercialization, clinical research or ind preparation, all of which are targeted biological innovative drugs; The company has entered the stage of clinical trials, and seven products are undergoing clinical trials for the treatment of more than 20 indications. Vidicizumab, tetasip and rc28 are the core products of Rongchang biology at present. Vidicizumab is the first ADC innovative drug independently developed in China and the only Chinese ADC product (antibody drug conjugate) approved by the US FDA for breakthrough therapy; Etaxel is used to treat systemic lupus erythematosus. At present, there are only two products in the global systemic lupus erythematosus innovative biological drug market, including etaxel. The other is GlaxoSmithKline’s baileyuzumab. At present, the annual sales of baileyuzumab is about US $1 billion. The research and development of therapeutic drugs for systemic lupus erythematosus is difficult, and many pharmaceutical companies have invested in this field. However, in the past 60 years, etacept and baileyoumab are the only two innovative biological drugs that have obtained marketing license.
At present, vidicizumab has received a down payment and milestone payment of up to US $2.6 billion, plus a gradient sales commission of up to 15%. Due to its unique mechanism of double targets and world-leading experimental data, tetasip may have the opportunity to sprint into the global “drug king” in the field of B cells. Since both tetasip and vidicizumab have been successfully included in the national medical insurance catalogue in the fourth quarter of 2021, it is expected to quickly expand the sales channels of products in 2022, so as to effectively and quickly promote the sales of products.
red weekly: upcoming Zhongfu Shenying’s operating revenue in 2021 was 1.173 billion yuan, a year-on-year increase of 120.44%; The net profit was 279 million yuan, a year-on-year increase of 227.02%. Can the company continue to improve its performance after listing?
Qiu Zheng: Zhongfu Shenying is one of the leading enterprises of carbon fiber products in China. Since 2019, with the rapid growth of demand in downstream wind power blades and other fields, as well as the increasing difficulty of foreign carbon fiber import due to the epidemic in 2020 and other reasons, the demand of China’s carbon fiber market has expanded rapidly. At present, the Chinese market is in short supply, and the product price has gradually increased.
Zhongfu Shenying’s production base located in Jiangsu Lianyungang Port Co.Ltd(601008) has an existing capacity of 3500 tons / year and is now operating at full capacity. The company is building a 10000 ton high-performance carbon fiber and supporting precursor project in Xining, which is expected to be completed in March 2022. It will be put into operation step by step according to the capacity matching and inventory of polymerization, spinning and carbonization lines. After being put into operation, the company’s performance is expected to be further improvedp align=”center”>
