\u3000\u3 China Vanke Co.Ltd(000002) 821 Asymchem Laboratories (Tianjin) Co.Ltd(002821) )
Event overview
On April 21, 2022, Asymchem Laboratories (Tianjin) Co.Ltd(002821) released the Q1 performance report of 2022: the company's total operating revenue was 2.062 billion yuan, with a year-on-year increase of 165.28%, excluding the impact of exchange rate fluctuations, a year-on-year increase of 171.64%. The net profit attributable to shareholders of listed companies was 499 million yuan, an increase of 223.59% year-on-year, and the adjusted net profit attributable to shareholders of listed companies increased by 252.42% year-on-year. The net profit attributable to shareholders of listed companies after deducting non recurring profits and losses was 486 million yuan, a year-on-year increase of 275.76%.
The strong revenue growth benefited from the two wheel drive strategy of "small molecule + emerging business". In Q1 2022, the company achieved a revenue of 2.062 billion yuan, a year-on-year increase of 165.28%, a record high. Among them:
1) small molecule business: the revenue increased by 165.9% year-on-year. We believe that the high-speed growth of small molecule cdmo revenue is driven by the delivery of large orders signed in 2021. At the same time, the operation of the new production capacity also matches the order demand. At present, the production capacity of the company has reached 5000 cubic meters, an increase of 76.9% compared with the end of 2020. It is expected that the production capacity of small molecule traditional batch reactors by the end of 2022 will increase by 46% compared with the end of 2021.
2) emerging businesses: the revenue increased by 157.4% year-on-year, and the revenue growth of chemical macromolecules, biological macromolecules, preparations and clinical cro exceeded 100%. The multi-point flowering of emerging businesses also laid a solid foundation for the sustainable development of the company.
The profit side showed super excellent performance, and the net profit margin maintained a high level
In Q1 2022, the company's gross profit margin was 45.24%, up 2.37pct year-on-year; The net profit margin was 24.22%, with a year-on-year increase of 4.36pct. The gross profit margin and net profit margin ranked among the first echelons of China's cdmo. In the future, with the further improvement of the operating efficiency of emerging business segments, it is expected to drive a better performance of the profit side. We believe that the company's excellent profitability benefits from: 1) making full use of the company's production capacity and reflecting the scale effect, driving the improvement of profit margin; 2) The company continues to improve the capability of the technology platform and optimize the process route of the project. The gross profit corresponding to large orders is considerable, which also further improves the profitability.
Investment advice: driven by large orders, we believe that the company's revenue and profit will grow strongly in 2022. At the same time, the company is also accelerating the construction of production capacity in various sectors. In the future, driven by the large and small wheels of small molecule cdmo in the core sector and emerging services in the incremental sector, the company is expected to maintain a high growth trend. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 2.56 billion yuan, 2.72 billion yuan and 3.14 billion yuan respectively, corresponding to 30, 28 and 25 times of the current share price PE respectively, maintaining the "recommended" rating.
Risk warning: the risk of performance falling short of expectations, new business investment risk and fixed asset investment risk.
