\u3000\u3 Shengda Resources Co.Ltd(000603) 259 Wuxi Apptec Co.Ltd(603259) )
Event: the company issued the announcement of Q1 pre increase in 2022. It is estimated that the operating revenue will be about 8.474 billion yuan (+ 71.18% YoY), the net profit attributable to the parent company will be about 1.643 billion yuan (+ 9.54% YoY), the net profit not attributable to the parent company will be about 1.714 billion yuan (+ 106.52% YoY), and the adjusted non IFRS net profit attributable to the parent company will be about 20.53 yuan (+ 85.82% YoY), with strong growth and performance in line with expectations.
Q1 performance exceeded the previous guidelines, and the growth was accelerated year-on-year. The company previously announced that Q1 was expected to achieve a year-on-year growth of 65% – 68%, and this announcement exceeded the previous guidelines by about 3-6pp. Despite repeated outbreaks in China and tense international conflicts, the company ensured stable production, timely delivery of orders and maintained strong growth. Compared with Q1 revenue in 21 years, the revenue growth rate of 22q1 is expected to increase by 15.87pp, and the revenue growth rate is further improved. We expect that it is mainly affected by the commercial orders of covid-19 small molecule drugs and the continuous promotion of the company’s integration strategy.
The capacity expanded rapidly and the large-scale effect was prominent. The growth rate of the company’s net profit attributable to the parent company in 22q1 was lower than that of the revenue end, mainly due to the changes in fair value and investment income of the investment subject matter, which was about -179 million yuan. The net profit excluding non parent company increased by about 106.52% year-on-year, reflecting the strong growth of the profit side of the main business, mainly due to the improvement of the company’s capacity utilization and the initial emergence of large-scale effect. The company expects that the fixed capital expenditure in 22 years will be about 9-10 billion yuan, and the further rapid expansion of production capacity will promote the rapid growth of annual revenue.
Profit forecast, valuation and rating: the company is a one-stop CXO leader, maintaining a net profit forecast of RMB 8.203107.03/13.388 billion for 22-24 years, with a year-on-year increase of 60.9% / 30.5% / 25.1% respectively. The PE of A-Shares corresponding to 22-24 years is 38 / 29 / 23 times, maintaining the “buy” rating; The corresponding PE of H shares for 22-24 years is 35 / 27 / 21 times, maintaining the “buy” rating.
Risk warning: the risk of epidemic persistence; The R & D investment of pharmaceutical enterprises is less than expected; Increased competition.
