\u3000\u3 China Vanke Co.Ltd(000002) 821 Asymchem Laboratories (Tianjin) Co.Ltd(002821) )
Key investment points
Event: the company released the first quarterly report of 2022, realizing an operating revenue of 2.06 billion yuan, a year-on-year increase of + 165.3%; The net profit attributable to the parent company was 500 million yuan, a year-on-year increase of + 223.6%; The non net profit attributable to the parent company was 490 million yuan, with a year-on-year increase of + 275.8%.
The profitability continued to improve and the performance of 2022q1 reached a new high. The performance of 2022q1 company reached a new high after 2021q4, with an operating revenue of 2.06 billion yuan (+ 165.3%), a net profit attributable to the parent of 500 million yuan (+ 223.6%), and a non net profit attributable to the parent of 490 million yuan (+ 275.8%). The growth of revenue accelerated, and the growth rate of profit side was significantly higher than that of revenue side. The pulling effect of large orders and emerging sectors was obvious.
The company’s financial indicators are stable, and its R & D investment continues to increase. The sales rate of 2022q1 company is 1% (- 1.5pp), the management rate is 7.9% (- 4.8pp), and the R & D rate is 6.4% (- 4.4pp). We believe that it is mainly due to the large-scale effects such as the substantial growth of revenue driven by large orders. In 2022q1, the R & D investment of the company reached 130 million yuan (+ 56.9%), accounting for 6.4% of the total operating revenue, ranking first in the global cdmo industry. The company vigorously promotes the development of advanced platforms such as CEPS, CFCT, CBST and CIMT and the application of a number of new technologies such as continuous reaction and enzyme technology, so as to effectively empower the company’s continuously evolving R & D technology platform.
High speed fulfillment of large orders, accelerated release of superimposed capacity, and strong momentum of small molecule cdmo. The small molecule cdmo business of 2022q1 company increased by 165.9% year-on-year, benefiting from the rapid fulfillment of large orders, the continuous promotion of key customer strategy and the accelerated release of small molecule capacity. By the end of March 2022, the company’s small molecule cdmo has accumulated new orders of US $1.46 billion, which fully reflects the global competitiveness of the company’s small molecule business and forms a good reputation effect; It is expected to complete the acquisition of snapdragon, a CDO company in continuous response, in 2022h1, so as to jointly improve the company’s competitiveness in the field of continuous response; The company has rapidly promoted the delivery of small molecule capacity. By the end of March 2022, the capacity of small molecule cdmo has reached 5000 cubic meters. It is expected that 2000 cubic meters of batch reaction capacity will be added in 2022. The investment in capacity construction has increased significantly, which is expected to help the company accelerate the realization of its annual performance in 2022.
Emerging businesses blossom at multiple points and open the ceiling of long-term development. In 2022q1, the company’s emerging business achieved a rapid growth of 157.4%, in which the revenue growth of chemical macromolecules, preparations, clinical cro and biological macromolecules exceeded 100%. With the continuous deepening of the company’s new business layout, emerging businesses may maintain an ultra-high growth trend and gradually become the core driving force of the company’s long-term development.
Profit forecast and rating. We expect that the EPS from 2022 to 2024 will be 9.91 yuan, 11.74 yuan and 14.98 yuan respectively, corresponding to the current stock price valuation of 30 times, 25 times and 20 times respectively, maintaining the “buy” rating.
Risk warning: the order is not as expected; The extension expansion is not as expected.
