Asymchem Laboratories (Tianjin) Co.Ltd(002821) performance achieved high-profile growth and gross profit margin improved significantly

\u3000\u3 China Vanke Co.Ltd(000002) 821 Asymchem Laboratories (Tianjin) Co.Ltd(002821) )

The performance of the company increased rapidly in 2022q1, with an operating revenue of 2.06 billion yuan (+ 165.28%) and a net profit attributable to the parent company of 500 million yuan (+ 223.59%). Among them, the operating revenue of small molecule business increased by 165.9% year-on-year, and the operating revenue of emerging business increased by 157.4% year-on-year. The gross profit margin of 2022q1 company is 45.2% (+ 2.38pct), which is due to the full promotion of the company's production capacity.

Key points supporting rating

The company achieved rapid growth in performance, made full use of production capacity and promoted the rise of gross profit margin. In the first quarter of 2022, the company achieved an operating revenue of 2.06 billion yuan, with a year-on-year increase of 165.28%, of which the small molecule business increased by 165.9%. The profit side company realized a net profit attributable to the parent company of 500 million yuan in the first quarter of 2022, with a year-on-year increase of 223.59%, and the growth rate of the profit side was higher than that of the income side. The gross profit margin of the company in the first quarter of 2022 was 45.2%, an increase of 2.38 percentage points year-on-year, which was due to the full promotion of the company's production capacity.

Large orders are expected to boost performance growth and continue to promote capacity construction Asymchem Laboratories (Tianjin) Co.Ltd(002821) continued to provide cdmo services for a small molecule chemical innovative drug of a customer. In February 2022, Asymchem Laboratories (Tianjin) Co.Ltd(002821) announced that Jilin Asymchem Laboratories (Tianjin) Co.Ltd(002821) a wholly-owned subsidiary of the company had signed a new batch of supply contract for related products with customers, with a contract amount equivalent to about RMB 3.542 billion and a supply time of 2022. At the end of 2021, the volume of the company's small molecule traditional batch reactor was nearly 4700m32022. At the end of 2022, the capacity of the company's small molecule traditional batch reactor is planned to increase by 46% compared with the end of 2021. In February 2022, the Dunhua production base of the company completed the delivery of a new plant, and the new batch capacity is expected to be nearly 500m3. Another API plant in Tianjin production base started production, and the new batch capacity is expected to be 160m3.

Emerging businesses continued to advance and their performance showed rapid growth. In the first quarter of 2022, the operating revenue of emerging businesses increased by 157.4% year-on-year, and the revenue growth of chemical macromolecules, biological macromolecules, preparations and clinical cro exceeded 100%.

Valuation

It is expected that the company will realize net profits of 2.134 billion yuan, 2.430 billion yuan and 2.912 billion yuan in 2022, 2023 and 2024, and EPS of 8071 yuan, 9194 yuan and 11017 yuan respectively.

Main risks of rating

Risk of delisting or large-scale recall of major innovative drugs served; The risk that the life cycle replacement and marketing of major innovative drugs are lower than expected; Overseas market operation risk; exchange-rate risks.

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