\u3000\u3 Guocheng Mining Co.Ltd(000688) 131 Shanghai Haoyuan Chemexpress Co.Ltd(688131) )
Key investment points
Event content: on April 22, the company disclosed the annual report of 2021. In 2021, the company realized an operating revenue of 969 million yuan, a year-on-year increase of 52.61%; The net profit attributable to the parent company was 191 million, an increase of 48.7% over the same period. At the same time, the company announced the profit distribution plan for 2021, which plans to distribute a cash dividend of 5.30 yuan (including tax) for every 10 shares, and increase 4 shares for every 10 shares to all shareholders with capital reserve, without bonus shares.
In terms of business segments, technical services became the highlight of the company’s performance growth in 2021, highlighting the enhancement of the company’s R & D strength: in 2021, the company’s molecular block and tool compound business technical services achieved an operating revenue of 666351 million yuan, a year-on-year increase of 131.46%, while the sales of related products achieved an operating revenue of 4783421 million yuan, a year-on-year increase of 50.88%; API and intermediate technical services achieved an operating revenue of 721112 million yuan, a year-on-year increase of 475.86%, while the sales of API products achieved an operating revenue of 3449763 million yuan, a year-on-year increase of 26.59%. In comparison, the technical service revenue in the molecular block and API sector has increased rapidly, which is significantly higher than the growth rate of product sales revenue in the same period. It is expected that the main reason is that with the company’s R & D investment and foreign investment integration, the company can provide product line expansion, and the development capacity of customized design has been significantly enhanced. Superimposed on the strong market demand for cro and cdmo in 2021, the relevant business has achieved rapid growth.
In a single quarter, the growth rate of the company’s revenue and net profit decreased marginally in 2021q4: in 2021q4, the company achieved an operating revenue of RMB 273 million, a year-on-year increase of 22.88% (Q3 revenue increased by 46.88%), and a net profit attributable to the parent company of RMB 47 million, a year-on-year increase of – 18.66% (Q3 net profit attributable to the parent company increased by 92.33%), and the margin of quarterly performance growth changed greatly; Among them, there are some reasons or can be attributed to the influence of the base. The 2020q3 net profit attributable to the parent as the 2021q3 comparison base is relatively low (only 25 million yuan), while the 2020q4 net profit attributable to the parent as the 2021q4 comparison base reaches 58 million yuan; Some other reasons may be related to the research and development of key products and the rhythm of goods preparation.
As one of China’s scarce CXO leaders, the company’s R & D investment has always maintained a high intensity: in 2021, the company’s R & D investment reached 103 million yuan, an increase of 59.65% over the same period last year, the proportion of R & D investment in the current period in the operating revenue was 10.67%, and the company’s R & D investment has always remained at a high level. During the reporting period, 1) in terms of molecular block and tool compound business, the company has carried out the design and development of chiral molecular block library, the research and development of tool molecules in the field of new coronal pneumonia, the development of drug fragment molecular library and other projects. Among them, the company has developed hundreds of hot compounds in the field of new coronal pneumonia, The synthesis route and process were optimized; In the field of car-t, the company has carried out the research and development of cell sorting magnetic bead products; 2) In the field of APIs and intermediates, the company has focused on the research and development of more than 20 APIs and intermediates, such as irebrin, tribetidine, caspotriol and pabcilib, and optimized the process route of anti infective drugs baloxavir and fabiravir.
In 2022, the company’s API base project and several R & D platform projects are nearing the end of construction, which is expected to bring new growth vitality to the company: the first API industrialization base project phase I project independently prepared by the company has been basically completed, and some workshops have entered the stage of equipment installation and commissioning. It is expected that the project will be gradually completed and put into operation in the second half of 2022; One ADC high activity production line was completed and put into operation in 2021 and obtained the drug production license in July. At present, the two new production lines are accelerating, and some production capacity will be released in 2022; The new drug creation and R & D service base project (phase I) and the new drug creation service laboratory construction project (phase I) for Chinese and foreign pharmaceutical enterprises to provide small molecule innovative drug cro and cdmo technical services are expected to be put into operation in 2022; The pharmaceutical R & D and biological reagent R & D industrialization base project (phase I) for the R & D of molecular blocks and core raw materials of biological reagents is expected to be put into operation in 2022.
The company adheres to both endogenous development and extension expansion, and continues to build a cro / cdmo / CMO whole industry service platform integrating “intermediate API preparation” to consolidate its competitive advantage; It is expected that the company’s performance is expected to maintain rapid growth under the background of continuous medium and long-term development of CXO industry: the company has maintained high-intensity investment internally and has completed independent R & D and synthesis of more than 14000 products. At the same time, the company has made up for its shortcomings through extension expansion for many times after listing; In October 2021, the company announced that it planned to use the over raised capital of 144 million yuan to obtain 90% equity after the capital increase of eurogene; Ouchuang gene has multiple PCR technology, target gene enrichment technology, nucleotide modification and gene synthesis, which can lay the foundation for the layout of the company’s biological pipeline; In March 2022, the company announced that it planned to acquire 100% equity of drug source drugs for no more than 420 million yuan; Drug source drug is an enterprise that provides pharmaceutical R & D, registration and production of APIs and preparations to new drug developers, which can lay the foundation for the company’s layout of preparation pipeline.
Investment suggestion: the company’s performance in 2021 is basically in line with expectations. In combination with the overall good development prospects of CXO industry, the company has always adhered to the combination of high-intensity R & D investment and external expansion to fill vacancies, the service advantages of the whole industry have been further highlighted, and the medium and long-term growth certainty of the company may be relatively high. At the same time, considering that many important investment and construction projects of the company will usher in key output nodes in 2022, and there are certain performance catalytic expectations in the medium term or in the future, we maintain the investment rating of buy-b of the company; The company’s earnings per share from 2022 to 2024 are expected to be 3.73 yuan, 5.68 yuan and 8.08 yuan respectively.
Risk tips: 1. Third party patent infringement risk; 2. Risk of new product R & D failing to meet expectations; 3. Policy risks, etc.
