\u3000\u3 Jiangsu Eastern Shenghong Co.Ltd(000301) 080 Acrobiosystems Co.Ltd(301080) )
Event: Acrobiosystems Co.Ltd(301080) released the annual report of 2021, and achieved a total revenue of 385 million yuan in the whole year, with a year-on-year increase of 56.30%; among them, non covid-19 products achieved a revenue of 297 million yuan, with a year-on-year increase of 70.89%; The revenue of covid-19 related products was 88 million yuan, with a year-on-year increase of 21.46%. The net profit attributable to the parent company reached 174 million yuan, with a year-on-year growth rate of 50.34%; Net profit deducted from non parent company was 164 million yuan, an increase of 40.58% over the same period of last year. Quarterly, the operating revenue of 2021q4 was 109 million yuan, a year-on-year increase of 44.46%. Overall, the company maintained rapid growth in revenue and profit, and its endogenous profitability was still at a high level.
The company also released the performance forecast for the first quarter of 2022: it is expected to achieve an operating revenue of 111117 million yuan in the first quarter, an increase of about 24.09% ~ 30.80% year-on-year compared with Q1 in 2021; The net profit attributable to the parent company is expected to be 50-56 million yuan (+ 23.05% ~ 37.81%). In the first quarter of 2022, the revenue of non covid-19 products reached 89-92 million yuan, still maintaining high growth (+ 43.33% ~ 48.16%); The global covid-19 drug R & D path is becoming clearer. Affected by this, the revenue of covid-19 related products decreased significantly compared with the same period of previous years, with a revenue of 22-25 million yuan, a year-on-year decrease of 8.62% – 19.58%.
Comments:
The biomedical market continued to prosper, and the company’s regular business revenue increased rapidly. At present, the world is in a period of vigorous development in the field of biomedicine. Emerging biopharmaceuticals such as ADC and car-t are emerging, new drug targets are constantly explored, and the demand for corresponding target proteins is significantly increasing. The company insists on focusing on the R & D and production of biological drugs, and the main product recombinant protein covers all links of R & D and production of biological drugs and diagnostic products. In 2021, the non covid-19 business realized a revenue of 297 million yuan, with a year-on-year increase of 70.89%, and the CAGR in 20172021 was 58.35%. The company’s products have a strong influence in the field of Chinese industrial customers. With the increasing demand for drug development, target verification, production and quality control of downstream pharmaceutical enterprise customers, the revenue of the company’s recombinant protein business will further rise.
Focusing on the world, the overseas market is growing rapidly. During the reporting period, the company achieved overseas non covid-19 business income of 161 million yuan, with a year-on-year increase of about 50%. From 2017 to 2020, the company’s overseas revenue accounted for more than 60%, and the three-year revenue CAGR was about 68% (including covid-19 related businesses). In 2021, the company set up a new European subsidiary, seeking to further cultivate the international market, explore international biomedical companies, scientific research institutes and other end customers, expand the company’s sales channels, and continuously improve the international recognition of the company’s products.
High R & D investment stabilizes the leading position in the industry. During the reporting period, the company continued to increase R & D investment, with R & D expenses reaching 60 million yuan, with a year-on-year growth rate of 94%. The company timely meets the new demand of drug R & D and production in the industry, speeds up the R & D and category expansion of biological reagents, and has sold more than 2500 products (including more than 2200 recombinant proteins); Keep up with the latest trend of biotechnology industry in the current global market, continuously optimize the production process of recombinant protein, improve production efficiency and scale, and stably maintain high-quality product output, so that the company is always in an advantageous position in the industry competition.
Profit forecast: it is estimated that the company’s revenue from 2022 to 2024 will be RMB 551 / 755 / 1034 million respectively, with a year-on-year increase of 43.1% / 37.0% / 37.0%. The net profit attributable to the parent company was 252 / 341 / 457 million yuan respectively, with a year-on-year increase of 44.6% / 35.3% / 34.2%, corresponding to EPS of 3.15/4.26/5.72 yuan and PE of 46 / 34 / 25 times from 2022 to 2024.
Risk factors: the R & D Progress of new products is less than expected; Customer expansion is less than expected, and the number of new orders is less than expected; Risk of overseas income decline.
