\u3000\u3 China Vanke Co.Ltd(000002) 821 Asymchem Laboratories (Tianjin) Co.Ltd(002821) )
Event: the company released the first quarterly report of 2022. In the first quarter of 2022, the company achieved total operating revenue and net profit attributable to the parent company of RMB 2.062 billion and 499 million respectively, with a year-on-year increase of 165.28% and 223.59% respectively; The non net profit deducted was 486 million yuan, a year-on-year increase of 275.76%.
Comments:
The high performance increase was mainly due to the execution of large orders previously signed. The company announced on November 17, 2021 that it had obtained orders of USD 481 million (about RMB 3.07 billion), announced on November 29, 2021 that it had obtained orders of RMB 2.72 billion, and announced on February 21, 2022 that it had signed orders of RMB 3.542 billion. The total amount of the three orders is 9.332 billion yuan, which is 201% of the total operating revenue in 2021. The core supply time is 2022.
All businesses maintained rapid growth. In accordance with the "two wheel drive" strategy, the company continues to maintain the global leading position of small molecule cdmo, and rapidly promotes the development of chemical macromolecular, biological macromolecular cdmo, preparation, clinical cro and other emerging business sectors. In the first quarter of 2022, the company's "two wheel drive" strategy was effectively promoted. The small molecule business increased by 165.9% year-on-year, the emerging business increased by 157.4% year-on-year, and the revenue growth of chemical macromolecules, biological macromolecules, preparations and clinical cro exceeded 100%.
Speed up the construction of production capacity to meet the demand of orders. At the end of the first quarter of 2022, the company's construction in progress was 1.093 billion yuan, a year-on-year increase of 62%; Fixed assets reached 2.614 billion yuan, a year-on-year increase of 63%. With Tianjin as the center, the company has covered Fuxin, Liaoning, Dunhua, Jilin, Jinshan, Shanghai and other regions, and has established a number of small molecule R & D and production bases and biological macromolecule bases. By the end of March, the volume of the company's traditional batch reactor was 5000m3. It is estimated that the capacity of small molecule traditional batch reactors will increase by 46% by the end of 2022 compared with the end of 2021. At the same time, the company continued to increase the application of continuous reaction in various plant areas. On the one hand, it completed the upgrading and transformation of multiple workshops and plants, on the other hand, it made great efforts to increase continuous reaction equipment in new plants.
Investment suggestion: the company is a leading small molecule cdmo enterprise in China. It continues to promote the "two wheel drive" strategy. It is expected to maintain the competitive advantage of small molecule cdmo in the future, and the emerging business is expected to maintain rapid growth. It is estimated that the company's earnings per share from 2022 to 2023 will be 10.36 yuan and 10.62 yuan respectively, and the corresponding PE of the current stock price will be 28.25 times and 27.55 times respectively, maintaining the "recommended" rating of the company.
Risk tips: intensified industry competition, less than expected capacity expansion or overcapacity, sharp fluctuations in exchange rate, brain drain, lower than expected performance growth, loss of key customers, industry policy risks, etc.
