\u3000\u3 China Vanke Co.Ltd(000002) 821 Asymchem Laboratories (Tianjin) Co.Ltd(002821) )
Event: on April 20, 2022, the company released the first quarter report of 2022. In 2022q1, the company achieved a 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%, and the performance growth was in line with expectations.
In 2022q1, the net profit attributable to the parent company increased by 223.59% year-on-year, and the performance growth was in line with expectations:
In 2022q1, the company achieved a 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%, and the performance growth was in line with expectations. Thanks to the rapid growth of orders and the timely delivery of production capacity, the growth momentum of the company’s small molecule business is strong, driving the continuous high growth of performance.
With sufficient orders on hand, the company’s performance is expected to continue to grow rapidly:
In terms of project pipelines, the overall number of projects of the company increased from 221 in 2020 to 328 in 2021, with a year-on-year increase of 48.42%. Among them, by the end of 2021, the number of projects in preclinical, early clinical, clinical phase III and commercialization stages of the company was 235, 55 and 38 respectively. The number of projects in the current period has increased rapidly and the funnel effect is prominent. The medium and long-term performance of the company is expected to continue to grow at a high level. In addition, according to the company’s announcement, the amount of major orders that have been landed recently exceeds 9 billion yuan, which is expected to further promote the high growth of short-term performance.
The continuous and rapid release of production capacity can effectively meet the needs of new orders:
According to the company’s announcement, the volume of the company’s traditional batch reactor has increased from 4700m3 at the end of 2021 to 5000m3 on March 31, 2022. It is expected that the volume of the traditional batch reactor will increase by 46% year-on-year at the end of 2022. From the analysis of leading indicators, the fixed assets and projects under construction in 2022q1 were 2.614 billion yuan and 1.093 billion yuan respectively, with a year-on-year increase of 63.26% and 62.47% respectively. The company is in the period of rapid release of production capacity, which fully meets the production capacity demand brought by new orders.
Investment suggestion: we expect the company to realize net profits of 2.753 billion yuan, 3.045 billion yuan and 4.129 billion yuan respectively from 2022 to 2024, with a year-on-year increase of 157.5%, 10.6% and 35.6% respectively; Give an investment rating of buy-a.
Risk tips: the growth of orders is less than expected, the production of new capacity is less than expected, the impact of exchange gains and losses, the progress of emerging businesses is less than expected, etc.
