\u3000\u3 Guocheng Mining Co.Ltd(000688) 131 Shanghai Haoyuan Chemexpress Co.Ltd(688131) )
Shanghai Haoyuan Chemexpress Co.Ltd(688131) issue the 2021 annual report. In 2021, the company achieved an operating revenue of 969 million yuan, a year-on-year increase of 52.61% (excluding the impact of exchange rate, the growth rate was 55.98%); The net profit attributable to the parent company was 191 million yuan, a year-on-year increase of 48.70%, and the net profit not attributable to the parent company was 177 million yuan, a year-on-year increase of 49.41%.
Looking at Q4 alone, the operating revenue was 273 million yuan, a year-on-year increase of 22.88%; The net profit attributable to the parent company was 47 million yuan, a year-on-year decrease of 18.66%, and the net profit deducted from non attributable to the parent company was 37 million yuan.
The revenue and profit are near the median value of the forecast, which is in line with expectations, and the capacity construction lays a foundation for long-term development
Quarter by quarter, the revenue side maintained an upward trend month on month. Q1-4 of the company achieved revenue of 226 million yuan, 230 million yuan, 241 million yuan and 273 million yuan respectively, and the revenue increased continuously month on month. Based on the high base of 20q4, 21q4 still achieved an increase of more than 20%, and the single quarter revenue reached a new high; On the profit side, Q4 profit narrowed year-on-year, due to the increase of operating costs and the increase of R & D investment. The annual profit growth rate was slightly lower than the revenue growth rate, which was due to the increase of listing related expenses and the increase of expenses for the construction of Shanghai headquarters, Anhui MAANSHAN technology platform and the expansion of talent team. Platform construction and team expansion have exerted short-term pressure on performance, but greatly improved the company’s industrialization ability, and the future development space will continue to be released.
In terms of sectors, the front and back-end businesses grew strongly.
The business income of molecular blocks and tool compounds was 545 million yuan, a year-on-year increase of 57.59%. The revenue of molecular block business was 138 million yuan (+ 69.28%), and the number of orders exceeded 163000; The business income of tool compounds was 407million yuan (+54.00%), and the number of orders exceeded 116000.
The revenue of API and intermediate business was 417 million yuan, a year-on-year increase of 46.32%. Among them, the generic drug business achieved a revenue of 219million yuan (accounting for 52.62%), accumulatively undertook 192 projects, and received 44.99 million yuan (+19.14%) of orders on hand; The cdmo business of innovative drugs developed strongly, with a revenue of 198 million yuan (accounting for 47.38%), undertaking 173 projects and on-hand orders of 92.17 million yuan (+ 68.48%).
The characteristic ADC business has performed brilliantly, and has successfully helped Rongchang biological rc48 to be listed. It is the first class I anticancer new drug of ADC to be applied for clinical application in China. There were more than 340 cooperative customers (+ 332.50%), 80 projects (+ 247.83%), and the sales revenue increased by 321.45% year-on-year.
The company attaches importance to R & D and continues to enrich its product line. In 2021, the R & D investment reached 103 million yuan, a year-on-year increase of 59.65%, accounting for 10.67% of the revenue. The company has accelerated the expansion of the product line available for tool compounds and molecular blocks. At present, the cumulative number of products has exceeded 58600 (42000 molecular blocks + 16000 tool compounds), an increase of more than 21000 compared with the same period in 2020, and more than 14000 self-developed products; More than 110 integrated compound libraries were constructed. The output of R & D achievements has continuously improved the company’s service ability in the R & D market.
The company’s capacity construction continued to speed up. 1) High activity ADC capacity continues to expand. A high activity production line in Anhui Haoyuan has been completed and put into operation, and the drug production license has been obtained in July 2021; Two new production lines will be released successively in 2022; One stop cdmo platform developed and produced by Zhenhao biological ADC is being renovated; 2) The construction of large-scale production of APIs and intermediates continued to advance. The main works of phase I of five production workshops in Ma’anshan industrialization base have been basically completed, and the designed annual production capacity is about 680 cubic meters, which is expected to be gradually released in the second half of 2022.
We expect that in 2022, the company’s extensive accumulation and full layout on multiple platforms will gradually release value. The molecular blocks and tool compounds with high difficulty and added value are customized and synthesized at the front end, and the back-end API sector undertakes and expands the front-end import value, so as to realize the integrated and coordinated development of the front and back ends.
Profit forecast and investment rating. We estimate that the net profit attributable to the parent company from 2022 to 2024 will be 269 million yuan, 394 million yuan and 558 million yuan respectively, with a year-on-year increase of 40.8%, 46.4% and 41.7% respectively, and the corresponding PE will be 37x, 25X and 18x respectively. We are optimistic about the development of the company for a long time and maintain the “buy” rating.
Risk tips: brain drain risk, company capacity shortage risk, etc.
