\u3000\u3 China Vanke Co.Ltd(000002) 821 Asymchem Laboratories (Tianjin) Co.Ltd(002821) )
Asymchem Laboratories (Tianjin) Co.Ltd(002821) released the first quarter report of 2022. In Q1 2022, the company realized an operating revenue of RMB 2.062 billion, with a year-on-year increase of 165.28%, and a net profit attributable to the parent company of RMB 499 million, with a year-on-year increase of 223.59%. The net profit attributable to the shareholders of the listed company after deducting non recurring profits and losses was RMB 486 million, with a growth rate of 275.76%, realizing EPS 1.5% 91 yuan.
Q1’s revenue and profit exceeded expectations, the development of new businesses accelerated, and the pull of large orders gradually appeared. The company’s 22q1 revenue side achieved a rapid growth of 165.28%, higher than 150% in the previous business forecast. After excluding the impact of exchange, the growth rate was faster, reaching 171.64%. It still increased month on month compared with Q4 in 21 years, and the effect of large orders was obvious. On the profit side, the company deducted 486 million yuan of non net profit. Considering the strong R & D investment (131 million yuan of R & D expenses), the overall profit growth and income growth are in line with expectations. The difference between the net profit attributable to the parent company and the deduction of non net profit mainly comes from the asset disposal and government subsidies in non recurring profits and losses.
Profit growth is faster than revenue growth, and profitability continues to improve. The Q1 profit side of the company increased by 223.59%, which was 252.42% after adjustment. The gross profit margin increased to 45.24% in Q1, which was significantly higher than that in 21q1. The development of large orders and emerging sectors has driven the company’s on-hand order scale and revenue growth to a record high.
In terms of sub sectors, the business sectors of the company have doubled simultaneously and achieved ultra-high growth. The small molecule business of 22q1 company increased by 165.9% year-on-year. In addition, the emerging business also achieved an ultra-high growth of 157.4%, and the revenue growth of chemical macromolecules, biological macromolecules, preparations and clinical cro exceeded 100%. The company’s “two wheel drive” strategy has been effectively promoted, and the overall business harvest has developed at a high speed.
The company’s financial indicators are sound. The company’s 22q1 sales expense ratio was 1.00%, down 1.47 PCT compared with last year; The administrative expenses increased by 65.28% year-on-year, resulting from the increase of salary and equity incentive expenses due to the increase of personnel; However, the management fee rate was 7.91%, a decrease of 4.78 PCT compared with last year; The financial cost is 48.36 million yuan, which comes from exchange rate fluctuations; The gross profit margin of the company in 22q1 increased by 2.38pct compared with that in 21q1, and the net profit margin increased by 4.37pct; Prepayments increased significantly, reaching 436million yuan, a year-on-year increase of 96.42%, mainly from prepaid equipment procurement. All financial indicators performed normally.
R & D continues to increase, and the innovation platform continues to be enabled. The company’s R & D investment in 22q1 reached 131 million yuan, a year-on-year increase of 56.86%, accounting for 6.35% of the revenue, ranking in the forefront of the industry. Continuous R & D innovation is one of the important factors for the company to maintain competitive advantage and achieve rapid growth. The expanded application of continuous flow reaction and continuously accelerated capacity delivery will effectively charge the company’s innovative R & D technology platform.
The company continues to deepen the all-round layout of cdmo, continue to be large and medium-sized customers, adhere to the two wheel drive development strategy of small molecule + emerging business, and make steady progress towards the first echelon of global cdmo. Profit forecast and valuation. We estimate that the net profit attributable to the parent company from 2022 to 2024 will be 2.516 billion yuan, 2.694 billion yuan and 3.297 billion yuan respectively, with a year-on-year increase of 135.3%, 7.0% and 22.4% respectively, and the corresponding PE will be 31x, 29x and 24x respectively. In the next few years, the company is expected to show rapid growth in performance with the increase of commercialization projects. We are optimistic about the company’s development for a long time and maintain the “buy” rating.
Risk warning: the project in clinical stage has the risk of decline; Project fluctuation risk in commercialization stage; The implementation of macromolecular cdmo strategy is lower than the expected risk.
