\u3000\u3 Guocheng Mining Co.Ltd(000688) 131 Shanghai Haoyuan Chemexpress Co.Ltd(688131) )
Event: Shanghai Haoyuan Chemexpress Co.Ltd(688131) released the annual report of 2021. The total revenue of the whole year was 969 million yuan, with a year-on-year increase of 52.61%. Excluding the influence of exchange rate, the revenue increased by more than 55.98%, and the net profit attributable to the parent company reached 191 million yuan, with a year-on-year increase of 48.70%; Net profit deducted from non parent company was 177 million yuan, with a year-on-year increase of 49.41%. Overseas revenue was 360 million yuan, a year-on-year increase of 25.22%. The operating income was rmb1.23 billion, representing a year-on-year increase of rmb1.82 billion, representing a net profit of rmb1.82 billion, representing a year-on-year increase of 3.52% over Q1.
Comments:
The business of front-end molecular blocks and tool compounds continues to make efforts. The company continues to strengthen R & D in the field of molecular blocks and tool compounds, continuously expand product types, cover the development of chiral molecules and covid-19 related drug fragment molecular library, and actively layout the fields of ADC and car-t to promote the integrated development of industry, University and research in the field of life sciences in China. By the end of the reporting period, the number of front-end products had exceeded 58600, and the brand value of "Leyan" and "MCE" had been continuously enhanced, driving the steady rise of front-end business income. During the reporting period, the front-end business achieved a revenue of 545 million yuan, a year-on-year increase of 57.59%; The revenue accounted for 56.24%, slightly higher than that of the previous year, and the company's industry position continued to improve.
The back-end API and intermediate business has developed steadily. The company has focused on the research and development of highly difficult API and intermediate processes such as irebrin and trobetidine, and has signed a sales sharing cooperation agreement with international well-known pharmaceutical enterprises; Optimize the process route of anti infective drugs and provide raw materials and intermediates for customers to develop anti covid-19 drugs. The company's self built Ma'anshan industrialization base is expected to be gradually completed and put into operation in the second half of 2022. The independent production capacity will continue to attract more cdmo customers, and the company's development will reach a new level. During the reporting period, the back-end business realized a revenue of 417 million yuan, a year-on-year increase of 46.32%. With the gradual implementation of self built capacity, the back-end sector is expected to develop rapidly.
Acquire drugs from drug sources and gradually complete the business map of CXO. On March 4, 2022, the company announced that it would acquire 100% equity of drug source drugs by issuing shares and paying cash, and the price of the underlying assets is expected to be no more than 420 million yuan. Through this acquisition, the company will further extend its business to the back end, create a comprehensive pharmaceutical R & D service integrating intermediates, APIs and preparations, realize the layout of the whole industrial chain in the CXO field, and further improve the company's comprehensive competitive strength in the industry.
Increasing R & D investment has stabilized the technical advantages of the whole industrial chain of new drug R & D. During the reporting period, the company continued to increase R & D investment, with R & D expenses reaching 103 million yuan, a year-on-year increase of 59.65%, and nearly 400 new technicians. The company's technical team has more than 300 people with a master's degree or above, who can realize comprehensive chemical design, process research, large-scale production and other related products and services from front-end molecular blocks / tool compounds to small-scale, pilot and amplification, and has a strong competitive advantage in the whole industrial chain of new drug R & D.
Profit forecast: it is estimated that the company's revenue from 2022 to 2024 will be RMB 1.555/2.254/3.168 billion respectively, with a year-on-year increase of 60.4% / 45.0% / 40.6%. The net profit attributable to the parent company was 341 / 492 / 688 million yuan respectively, with a year-on-year increase of 78.4% / 44.3% / 40.0%, corresponding to EPS of 4.58/6.61/9.26 yuan and PE of 29 / 20 / 15 times from 2022 to 2024.
Risk factors: the R & D Progress of new products is less than expected; Customer expansion was less than expected, the number of new orders was less than expected, and the progress of new capacity was less than expected.
