\u3000\u3 Shengda Resources Co.Ltd(000603) 707 Nanjing King-Friend Biochemical Pharmaceutical Co.Ltd(603707) )
Report summary
After more than 20 years of heparin business accumulation, the company has built a vertical integration platform of heparin raw materials + preparations, quickly entered the international sterile preparation market through the acquisition of Jianjin and meitheal, and arranged the cdmo business of small molecule preparations and biological drug stock solution + preparations based on many years of R & D and production experience. It has transformed into an international first-class biopharmaceutical enterprise with three business segments. We expect that driven by the troika of heparin business, preparation business and cdmo business, the company's performance is expected to achieve long-term steady growth.
Key investment points
Heparin business: deeply cultivate the heparin industry chain and become the global leader in heparin raw materials
The heparin business segment of the company has covered all links of API and downstream preparation in the middle of the industrial chain. In the heparin API sector, the company has covered the business of standard heparin API and low molecular weight heparin API, paid attention to the quality control in the production process of API, successfully passed the certification of National Drug Administration for many times, and established long-term cooperative relations with international mainstream heparin preparation companies; In the heparin preparation sector, the approval documents of standard heparin preparation and low molecular weight heparin preparation at home and abroad have been obtained, and the market share of enoxaparin / nadroparin / daparin preparation in China is in the top four. We believe that heparin, as one of the most widely used anticoagulant and antithrombotic drugs in clinic, is expected to usher in greater market space. With the addition of the company's high-quality integrated heparin business layout, the heparin API + preparation business is expected to maintain stable growth.
Preparation business: the internationalization of injections has been continuously promoted, driving the rapid growth of performance
The triple moat of quality, registration and sales of overseas sterile injection business shows its advantages. Through the acquisition of Jianjin and meitheal companies, it has quickly entered the international sterile injection Market. In addition to heparin preparations, it has 43 anda approvals. Many production lines have passed the FDA certification of the United States. Rich FDA application experience and local professional sales teams in the United States jointly create the competitive barrier of overseas preparation business. The "Sino US double report" and "winning the bid for centralized purchase" of China's preparation business sector quickly opened the Chinese market. Eight injection products were deemed to have passed the consistency evaluation and occupied the first mover advantage of products, of which two won the bid for the fifth batch of national centralized purchase; Relying on the Internet 365, the company can significantly improve the sales efficiency of its first-line sales by making use of its core technology.
Cdmo business: layout of small molecule + macromolecule field, and outsourcing business can be expected in the future
Relying on years of global R & D, production experience and quality system advantages, the company aims to help friends and improve themselves at the same time, and actively arranges the cdmo business of small molecule preparations and biological drug stock solution + preparations. The cdmo business of small molecule chemical medicine sterile preparation helps Chinese pharmaceutical enterprises solve the obstacles of global market entry and international competition. The cooperation with Taize Huikang marks the company's formal entry into the biological macromolecular cdmo business, providing customers with biological macromolecular stock solution + Preparation cdmo services, forming a joint force with the original small molecule cdmo business, which is expected to become an innovative driving force for the company's rapid development in the future.
Profit forecast and investment rating
We estimate that the company's operating revenue from 2021 to 2023 will be RMB 3889 / 51.686819 billion; The net profit attributable to the parent company is 1.103/14.83/1.976 billion yuan, and the corresponding EPS is 0.89/1.19/1.59 yuan. We are optimistic about the business layout of the company's three sectors. Referring to the valuation of comparable companies, we give the company 30.76 times PE in 2022, with a target price of 36.60 yuan. For the first time, give a "buy" rating.
Risk warning: risk of rising raw material prices; Downstream demand fluctuation risk; Fluctuation risk of sterile injection development and approval; Order volatility risk; Risk that the progress of new drug research and development and marketing is less than expected
