\u3000\u3 Shengda Resources Co.Ltd(000603) 456 Zhejiang Jiuzhou Pharmaceutical Co.Ltd(603456) )
The results of the first quarter report were bright, exceeding market expectations
The company issued the annual report of 2021 and the first quarterly report of 2022. In the 21st year, the income was 4.063 billion yuan, a year-on-year increase of + 53.48%, and the net profit attributable to the parent company was 634 million yuan, a year-on-year increase of + 66.56%. After deduction, the net profit attributable to the parent company was 573 million yuan, a year-on-year increase of + 77.86%. 22q1 achieved a revenue of 1.374 billion yuan, a year-on-year increase of + 60.46%, a net profit attributable to the parent company of 208 million yuan, a year-on-year increase of + 120.13%, and a net profit attributable to the parent company of 196 million yuan after deduction, a year-on-year increase of + 102.28%. The performance exceeded expectations, mainly benefiting from the strong growth of cdmo business: ① the company’s R & D and product delivery capacity was further improved, and the growth momentum of new business orders and projects was rapid; ② The listed projects served by the company continued to be stable and large-scale, and the project revenue increased steadily in the commercialization stage.
With the rapid development of cdmo, the number of order items has increased and the structure has been continuously optimized
The company’s cdmo business has an annual revenue of 2.3 billion yuan in 21 years, a year-on-year increase of + 79%, accounting for 57% of the revenue, and the proportion is increasing year by year. By the end of the 21st century, the company had undertaken 20 listed projects, 49 phase III clinical projects and 582 phase I and phase II clinical projects, covering the treatment fields of anti-tumor, anti heart failure, anti-virus, central nervous system, cardio cerebrovascular and so on. The rich early projects are expected to bring more space for the development of back-end large orders. The number of new drug projects submitted to NDA has increased significantly, which continues to boost the rapid growth of the company’s cdmo business.
API revenue increased steadily, and generic drug preparation projects continued to promote
The company’s API business revenue was 1.3 billion yuan in 21 years, a year-on-year increase of + 16%. The company’s newly developed hypoglycemic products boost the listing of customer preparation products in Europe; There are 17 generic drug preparation projects in different research and development stages, among which the preparation product aed-02 sustained release tablet anda is still under FDA approval, and the nmpa listing application was submitted in July 2021; The preparation product t2dm-02 sustained release tablets has obtained the nmpa listing application acceptance notice.
“Internal new construction, external mergers and acquisitions”, and actively layout global advanced production capacity
The construction of Ruibo Taizhou new base has started, and the company has acquired 100% equity of Taihua Hangzhou, rapidly improving the company’s multi regional production capacity layout; Jiangsu Ruike’s production and operation continued to be stable, providing strong capacity guarantee for the company’s business. In terms of preparation capacity construction, “Siwei pharmaceutical 10 billion tablet preparation project (phase I)” has been basically completed. Siwei pharmaceutical obtained the drug production license in August 2021, and we expect to generate revenue in 22 years.
Earnings forecast, valuation and rating
We expect that the company’s revenue from 2022 to 2023 will be 5.3 billion yuan, 7.0 billion yuan and 9.1 billion yuan respectively, with a year-on-year increase of 31%, 32% and 29% respectively. The net profit will be 0.9 billion yuan, 1.2 billion yuan and 1.6 billion yuan respectively, with a year-on-year increase of 42%, 35% and 32% respectively, and the corresponding PE will be 43, 32 and 24x respectively. The first quarterly report of the company exceeded expectations, optimistic about the development of the company’s follow-up cdmo business and maintained the “buy” rating.
Risk tips
Rising prices of raw materials, failure of new drug research and development by customers, life cycle replacement of main innovative drugs served, exchange rate fluctuations and stricter environmental protection
