\u3000\u3 Shengda Resources Co.Ltd(000603) 259 Wuxi Apptec Co.Ltd(603259) )
Event overview
On April 10, 2022, Wuxi Apptec Co.Ltd(603259) released the performance forecast of Q1 in 2022: Q1 company is expected to realize an operating revenue of 8.474 billion yuan in 2022, with a year-on-year increase of 71.18%; The net profit attributable to the parent company is expected to be 1.643 billion yuan, a year-on-year increase of 9.54%; It is estimated that the adjusted net profit attributable to the parent company under non IFRS is RMB 2.053 billion, with a year-on-year increase of 85.82%; It is estimated that the net profit deducted from non parent company is 1.714 billion yuan, with a year-on-year increase of 106.52%.
Q1 revenue exceeded expectations and scale reached a new level
In 2022, Q1 company achieved an operating revenue of 8.474 billion yuan, an increase of 71.18% year-on-year, exceeding the 65% to 68% expected revenue growth rate in the first quarter previously announced by the company, creating the highest revenue scale in a single quarter in history. In addition, if the operating income is calculated with a constant exchange rate after deducting the impact of exchange rate, the growth over the same period of last year is expected to reach about 78.47%. Under the influence of the continuous and repeated epidemic, the company timely launched the business continuity plan to ensure the continuous stability of production and operation, so as to meet the needs of timely delivery of customers’ orders and continuously empower global customers.
The profit side showed excellent performance, significantly exceeding the revenue growth rate
In Q1 2022, the company realized a net profit attributable to the parent company of 1.643 billion yuan, a year-on-year increase of 9.54%; The adjusted net profit attributable to the parent company under non IFRS was 2.053 billion yuan, a year-on-year increase of 85.82%; The net profit deducted from non parent company was 1.714 billion yuan, with a year-on-year increase of 106.52%. The net profit attributable to the parent company is greatly affected by the changes in fair value and investment income of the subject matter invested by the company. After adjustment, the net profit attributable to the parent company can better reflect the actual operation of the company. The super excellent performance of the profit side is due to the continuous improvement of capacity utilization and the further manifestation of scale effect through the continuous optimization of operating efficiency.
The five business segments go hand in hand to accelerate capital expenditure and guide the rapid development of the company
The company continues to optimize and explore the business synergy between cross platforms, accelerate the pace of globalization, continue to strengthen the company’s unique integrated crdmo + ctdmo business model, and continuously expand services from “following the development of projects” to “following the development of drug molecules”. The short-term chemical business + testing business + biological business will maintain a high growth trend, and the medium and long-term cell gene therapy and ddsu business may usher in a cashing period. Meanwhile, in 2022, the company will continue to increase capital expenditure, with an estimated capital expenditure of 9-10 billion yuan, and promote the construction of China’s R & D and production facilities and international layout.
Investment suggestion: it is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 8.68 billion yuan, 10.51 billion yuan and 13.33 billion yuan respectively, with a year-on-year increase of 70%, 21% and 27%, maintaining the “recommended” rating.
Risk warning: the risk of performance falling short of expectations, new business investment risk and fixed asset investment risk
