\u3000\u3 China Vanke Co.Ltd(000002) 821 Asymchem Laboratories (Tianjin) Co.Ltd(002821) )
Event: on April 20, 2022, the company released the first quarterly report of 2022. In the first quarter of 2022, the company realized an operating revenue of 2.062 billion yuan, a year-on-year increase of 165.28%; The net profit attributable to the parent company was 499 million yuan, a year-on-year increase of 223.59%; The net profit deducted from non parent company was 486 million yuan, with a year-on-year increase of 275.77%.
The main business accelerated growth, and small molecule and emerging businesses continued to be strong. After excluding the exchange rate difference, the income of 2022q1 increased by 171.64% year-on-year, and the adjusted net profit attributable to shareholders of listed companies increased by 252.42% year-on-year, with a stronger growth and a record high. In terms of business, in 2022q1, the small molecule business increased by 165.9% year-on-year, and the emerging business increased by 157.4% year-on-year. Among them, the revenue growth of chemical macromolecules, biological macromolecules, preparations and clinical cro exceeded 100%. In addition, the gross profit margin in 2022q1 is 45.24% (+ 2.37pp). We expect the accelerated growth of the main business and the continuous improvement of profitability, mainly due to: ① the prominent scale effect caused by the continuous fulfillment of large orders; ② In recent years, the company has increased investment in emerging businesses, which is expected to gradually usher in the harvest period.
Capacity continued to expand, fixed assets and projects under construction grew rapidly, and management capacity continued to be optimized. The net operating cash flow in 2022q1 was 205 million yuan, a year-on-year increase of 103.27%. It is mainly due to the accelerated growth of operating income and good payment collection, and the increase of material purchase and salary payment. The ending inventory was 1.708 billion yuan (up + 113.31% from 2021q1), accounting for 10.42% of the assets, mainly due to the increase of sales orders and the increase of inventory goods and products in process. At the end of the period, the fixed assets were 2.614 billion yuan, a year-on-year increase of 63.26%, and the projects under construction were 1.093 billion yuan, a year-on-year increase of 62.47%, mainly due to the accelerated expansion of production capacity and facilities in Jilin and Zhenjiang. In terms of expense rate, the sales expense was 20.54 million yuan (+ 7.31%), and the expense rate was 1.00%, a year-on-year decrease of -1.46pp. The management expense was 163 million yuan (+ 65.28%), and the expense rate was 7.90%, with a year-on-year decrease of 4.78pp, mainly due to the steady increase in the amortization of equity incentive expenses of the company. The R & D expense was 131 million yuan (+ 56.86%), and the expense rate was 6.35%, a year-on-year decrease of 4.39 PP, mainly due to the significant increase in revenue.
Profit forecast and investment suggestions: we expect that the company's revenue from 2022 to 2024 will be RMB 11.666 billion, 11.929 billion and 12.195 billion, with a year-on-year increase of 151.48%, 2.26% and 2.23%, and the net profit attributable to the parent company will be RMB 2.572 billion, 2.604 billion and 2.701 billion, with a year-on-year increase of 140.58%, 1.22% and 3.75%. Considering that the company is in a high boom and high-quality track of innovative drug R & D and production outsourcing, and has become China's cdmo leader with comprehensive advantages such as technology, leading the rapid growth of the industry, it is expected to enjoy the valuation premium and maintain the "buy" rating.
Risk warning events: the public materials used in the research report may have the risk of information lag or untimely update, and the loss of core technicians; Risks of raw material supply and price rise, environmental protection and safety production risks; Exchange rate fluctuation risk.
