\u3000\u3 Guocheng Mining Co.Ltd(000688) 131 Shanghai Haoyuan Chemexpress Co.Ltd(688131) )
Event: on April 21, 2022, the company released its annual report for 2021. In 2021, the company achieved a revenue of 969 million yuan, a year-on-year increase of 52.61%; The net profit attributable to the parent company was 191 million yuan, a year-on-year increase of 48.70%, and the performance growth was in line with expectations.
In 2021, the net profit attributable to the parent company increased by 48.70% year-on-year, and the performance growth was in line with expectations: on the sales side, the company achieved a revenue of 969 million yuan in 2021, a year-on-year increase of 52.61%. Among them, the business of molecular building blocks and tool compounds achieved a revenue of 545 million yuan, a year-on-year increase of 57.59%; API and intermediate business achieved a revenue of 417 million yuan, a year-on-year increase of 46.32%. On the profit side, in 2021, the company realized a net profit attributable to the parent company of 191 million yuan, a year-on-year increase of 48.70%, and the performance growth was in line with expectations. The high growth of the company’s performance is mainly due to the steady development of the front-end molecular block / tool compound business and the rapid promotion of the back-end API / cdmo project.
Rapid expansion of product lines and customer groups, steady development of molecular block / tool compound business: the company drives the steady growth of molecular block and tool compound business through product development and customer expansion. In terms of product development, the company’s molecular block / tool compound business has carried out the design and development of chiral molecular block library, the research and development of tool molecules in covid-19 pneumonia field, the development of drug fragment molecular library and other projects. The product application fields cover cancer, neuroscience, immunology and other hot fields, and the number of products has increased rapidly from 30000 in 2018 to 58600 in 2021; In terms of customer development, on the one hand, the company cooperates with many multinational pharmaceutical enterprises, world-renowned universities, scientific research institutes and cro companies, on the other hand, it establishes a stable cooperative relationship with overseas well-known professional dealers of drug R & D reagents such as Thermo Fisher, sigma Aldrich, emolecules and Namiki.
With the increasing abundance of project pipelines and the rapid construction of production capacity, cdmo business is expected to rise rapidly: the company quickly promotes the transformation and upgrading of back-end business cdmo by enriching project pipelines and strengthening production capacity. In terms of project pipeline, there are 148, 10, 7, 3 and 5 projects in preclinical / phase I clinical, phase II clinical, phase III clinical, new drug listing application stage and approved listing respectively, and the funnel effect of project pipeline is becoming more and more obvious. Among them, in 2021, the number of ADC projects reached 80 (+ 247.83%), and the number of cooperative customers exceeded 340 (+ 332.50%). In terms of the production capacity construction of APIs and intermediates, according to the announcement of the company, the first phase of the industrialization base invested and built in Ma’anshan will be rapidly promoted in 2021, with a design annual production capacity of about 680m3, and five production workshops are planned to be built. At present, the main works of phase I project have been basically completed, and it is expected that 2022h2 will be put into operation. In terms of ADC capacity construction, according to the company’s announcement, an ADC high activity production line invested and constructed by the company in Anhui Haoyuan R & D center has been put into operation in 2021, two new production lines are advancing rapidly, and some of its capacity is expected to be released in 2022
Investment suggestion: we expect the company to realize net profits of 270 million yuan, 382 million yuan and 537 million yuan respectively from 2022 to 2024, with a year-on-year increase of 41.4%, 41.2% and 40.7% respectively; Give an investment rating of buy-a.
Risk tips: new product R & D risk, risk that some product sales are affected by customer project progress, risk of exchange rate change, risk that production capacity is less than expected, etc.
