\u3000\u30 Guangdong Tengen Industrial Group Co.Ltd(003003) 63 Porton Pharma Solutions Ltd(300363) )
Event:
Porton Pharma Solutions Ltd(300363) issue the announcement of restricted stock incentive plan (Draft) in 2022. The company plans to grant 7.14 million restricted shares to 212 incentive objects, accounting for about 1.31% of the current total share capital, of which 572000 shares are granted for the first time, accounting for about 80% of the incentive plan, and 1428000 shares are reserved, accounting for about 20% of the incentive plan. The plan stipulates that the initial grant price is 41.50 yuan / share.
Comments:
The performance appraisal target shows high growth confidence, and equity incentive improves the cohesion and contribution of core employees. The company plans to conduct assessment and determine the ownership in three fiscal years from 2022 to 2024. The assessment objectives for the first grant are: Based on the 2020 net profit, the growth rate in 2022 is not less than 190%, that in 2023 is not less than 220%, and that in 2024 is not less than 260%. The proportion of the number of rights and interests belonging to the grant object in the number of First grants is 40%, 30% and 30% respectively. Among the incentive objects, there are 6 senior managers, and the rest are middle and senior managers and core backbones, who have made great contributions to the company’s development direction, performance, technology and projects. The new phase of equity incentive is expected to continue to provide the cohesion of core employees and their future contribution to the company, so as to enhance the competitiveness of the company.
The inflection point has come: the cdmo of API has been successfully transformed, and the cdmo of preparation and CGT has entered a new stage. In 2021, the diversion effect of API cdmo business pipeline began to show, providing long-term growth momentum. Among them, API revenue increased significantly, and the effect of transformation and upgrading was remarkable; Breakthroughs have been made in preparation and CGT cdmo customers, projects and newly signed orders, and emerging businesses have entered a new stage.
Double growth of R & D and production capacity to build a multi domain comprehensive cdmo platform. By the end of 2021, the company has eight R & D centers in Chongqing, Shanghai, Chengdu, Suzhou and New Jersey, with 1201 R & D technicians; In terms of production capacity, the company currently has a production capacity of 2019m3, with a year-on-year increase of about 65%. In 2022, the company will increase capital expenditure and is expected to invest 1.7 billion yuan to build three sectors and J-star production capacity to meet the rapidly growing market demand and continue to build a comprehensive cdmo platform.
Profit forecast and investment rating: we expect the company’s operating revenue to be RMB 7.743 billion, RMB 8.034 billion and RMB 10.670 billion from 2022 to 2024, with a year-on-year increase of 149.4%, 3.8% and 32.8%; The net profit attributable to the parent company was 1.646 billion yuan, 1.518 billion yuan and 2.001 billion yuan respectively, with a year-on-year increase of 214.2%, – 7.8% and 31.8%, corresponding to 25 / 27 / 21 times of PE from 2022 to 2024.
Risk factors: increased competition in the industry, decline in R & D investment and outsourcing demand in the pharmaceutical industry, China’s international policies, loss of core technicians and other risks.
