\u3000\u3 China Vanke Co.Ltd(000002) 821 Asymchem Laboratories (Tianjin) Co.Ltd(002821) )
Event: the company released the first quarterly report of 2022, which achieved a revenue of 2.062 billion yuan (+ 165.28% YoY), a net profit attributable to the parent company of 499 million yuan (+ 223.59% YoY), and a deduction of 486 million yuan (+ 275.76% YoY), which was in line with the expectation.
Q1 met expectations and significantly improved profitability. Excluding the impact of exchange rate fluctuations, the company’s revenue in 2022q1 increased by 165.28% year-on-year, in line with expectations; Among them, small molecule cdmo + 165.9% year-on-year, and emerging business + 157.4% (the revenue growth rate of chemical macromolecules, biological macromolecules, preparations and clinical cro is 100% +). In terms of profitability, the gross profit margin of 2022q1 company is 45.24% (+ 2.37ppyoy) and the net profit margin is 24.22% (+ 4.36ppyoy). We expect that the main reason is that the value of large orders is high and the sales expense rate is low.
High growth of orders on hand + release of new production capacity, and sustained high growth of small molecules can be expected. By the end of the first quarter of 2012, the company’s total orders on hand were US $1.898 billion, an increase of 320% over the same period of 21 years. By the end of 2020m3, the volume of the traditional reactor batch was 4700m3, and the volume of the traditional reactor was nearly 4700m3. According to the company’s plan, the capacity of small molecule traditional batch reactors is planned to increase by 46% by the end of 2022 compared with the end of 2021. The performance elasticity of new capacity is worth looking forward to.
Various emerging businesses accelerated and opened the long-term ceiling. In 2021, the total revenue of the company’s four new businesses was nearly 400 million yuan (+ 67.43% YoY), and 327 emerging service projects were completed; The proportion of emerging business revenue increased from 2.19% in 2018 to 8.57% in 2021. 1) Chemical macromolecules: in 2021, the revenue increased by 42.48% year-on-year, and 14 new customers were developed. The company is focusing on promoting the R & D and capacity construction in the field of oligonucleotide cdmo. 2) Preparation business: achieve rapid and high-quality growth. In 2021, revenue increased by 80.33% year-on-year. More than 40% of orders came from foreign customers such as the United States and South Korea, and 40 API + Preparation projects were undertaken. 3) Clinical cro: after the merger and acquisition of Guanqin pharmaceutical, the integration effect was remarkable. In 2021, the revenue increased by 83.71% year-on-year. 150 + project contracts were signed (70 + were innovative drug projects), and the on-hand orders were 300 million yuan + RMB; In October 21, it acquired 100% equity of yipukono, which enhanced its service capacity in data management and biometrics. 4) Biological macromolecules: by the end of the first quarter of 22, the orders on hand had reached 130 million yuan. It is expected to take the lead in the field of ADC. Shanghai Jinshan has initially formed the capacity of R & D and pilot production. It is expected to complete the capacity construction of 2x2000l disposable bioreactor antibody stock solution and 2x500ladc commercial coupling stock solution in the middle of 22 years, which is expected to open up the service capacity from payload, linker to antibody.
Profit forecast, valuation and rating: as the leader of small molecule cdmo, the company has built a strong moat through advanced technology. At the same time, various emerging businesses have entered a period of accelerated development, and the subsequent growth momentum is strong. We maintain the company’s net profit attributable to the parent company for 22-24 years to be RMB 2.927/25.77/2.811 billion. According to the latest equity calculation, EPS is RMB 11.07/9.75/10.63 respectively, and the current price corresponding to PE is 26 / 30 / 28 times respectively, maintaining the “buy” rating.
Risk warning: the volume of commercial orders is less than expected; The decline in sales of commercial products led to a decline in the scale of orders.
