\u3000\u3 Guocheng Mining Co.Ltd(000688) 131 Shanghai Haoyuan Chemexpress Co.Ltd(688131) )
Event: the company released its annual report for 2021. The company achieved an operating revenue of 970 million yuan, a year-on-year increase of 52.6% (excluding the impact of exchange rate, a year-on-year increase of 56%); The net profit attributable to the parent company was 190 million yuan, a year-on-year increase of 48.7%; The non net profit attributable to the parent company was 180 million yuan, a year-on-year increase of 49.4%, and the performance growth was in line with expectations.
The front-end molecular block / tool compound business has developed rapidly, and the number of products and customer expansion have been steadily promoted. In 2021, the company’s molecular block / tool compound business achieved a revenue of 550 million yuan (+ 57.59%). 1) Product quantity: the cumulative number of products exceeds 59000, including about 42000 molecular blocks and 16000 tool compounds; More than 110 kinds of integrated compound libraries were constructed. In 2021, the orders of molecular blocks and tool compounds of the company exceeded 163000 and 116000 respectively; 2) Customer development: the company has deepened cooperation with Chinese and foreign pharmaceutical enterprises, scientific research institutes, colleges and universities, cro companies and other customer groups, and has published more than 18000 scientific research documents.
The back-end API / intermediate business project reserves are abundant, and the cdmo project structure continues to be optimized. In 2021, the company’s back-end API / intermediate business achieved a revenue of 420 million yuan (+ 46.3%), and more than 100 product types completed process development, of which 92 products have the foundation of industrialization. Generic drug business: 192 projects have been undertaken in total, including 51 commercial projects and 119 pilot projects; Innovative drug cdmo has undertaken 173 projects, of which 5, 3, 17 and 148 have been approved for listing, listing application stage, phase II / III clinical and phase I clinical / preclinical projects respectively. The transformation from generic drug cdmo to innovative drug has accelerated. ADC business: in 2021, the company had more than 340 ADC customers (+ 332.5%) and 80 projects (+ 247.8%). The company has obvious advantages in organic synthesis ability, innovation ability and experience. In June 2021, it helped Rongchang biological vidicizumab (rc48) to be listed. It is the first class I anticancer new drug of clinical ADC in China.
The construction of the company’s own production capacity is accelerated, and large-scale production is ready. 1) API / intermediate production capacity: the company’s Ma’anshan base phase I covers an area of about 131.8 mu, with a design annual production capacity of about 680 cubic meters. It is expected that 2022h2 will be gradually completed and put into operation. After completion, the company’s own GMP grade API and intermediate production base will be formed; 2) ADC capacity: Anhui Haoyuan ADC high activity production line was completed and put into operation in 2021, and obtained the drug production license in July. Two new production lines are expected to be put into operation in 2022. With the continuous improvement of the platform construction, the company may have the end-to-end industrial service ability from antibodies and other coupled biological drugs, linkers / payloads to biological coupled drug stock solutions and preparations, so as to accelerate the development of high-quality biological coupled drugs.
Profit forecast: we predict that the EPS from 2022 to 2024 will be 3.98 yuan, 5.73 yuan and 8.17 yuan respectively, corresponding to 34 times, 24 times and 17 times of the current stock price valuation respectively.
Risk warning: the order is not as expected; Risk that the progress of products under development is less than expected.
