\u3000\u3 Shengda Resources Co.Ltd(000603) 259 Wuxi Apptec Co.Ltd(603259) )
Key investment points
Event: the company achieved a revenue of RMB 8.474 billion in the first quarter of 2022 (+ 71.18%, the year-on-year growth rate in brackets, the same below); The net profit attributable to the parent company is 1.643 billion yuan (+ 9.54%), deducting the non net profit of 1.714 billion yuan (+ 106.52%), and the net profit of non IFRS is 2.054 billion yuan (+ 85.82%).
The performance maintained high growth, and the forward-looking plan reduced the impact of the epidemic: the company's Q1 revenue was + 78.47% year-on-year after excluding the impact of exchange rate. The non recurring profits and losses were mainly the changes in the fair value of the invested object, which maintained a high-speed growth under the impact of the epidemic. When the epidemic broke out in Shanghai at the end of March, the company launched the business continuity plan at the first time. 1) arrange employees to stay on site to ensure production; 2) Make full use of the company's strong industrial chain and supply chain advantages to ensure sufficient supply of raw materials. Adequate plan preparation ensures the stability of the company's performance in the first half of 2022.
High growth rate of conventional chemical business and accelerated volume of new molecular business: in the first quarter of 2022, the company's chemical business realized revenue of 6.118 billion yuan (+ 102.1%), including R-end revenue of 1.745 billion yuan (+ 46.6%) and D & M end revenue of 4.373 billion yuan (+ 138.1%). Thanks to covid-19 order delivery, the chemical business doubled. The company's conventional business still maintained a high growth rate. After excluding covid-19 business, the growth rate of conventional business reached 52.3%. The company completed 90000 customized compounds in 2022q1, and 217 new molecules were added to the chemical drug process R & D and production pipeline. By the end of March 2022, there were 1808 new drug molecules in chemical business, including 49 phase III projects and 42 approved projects. The number of D & M customers of oligonucleotide and polypeptide drugs reached 86 (+ 72%) and the number of molecules reached 121 (+ 98%).
Relying on the wind integration voucher, the testing business maintained stable growth: the company's testing business revenue in the first quarter of 2022 was 1.279 billion yuan (31.7%). In terms of splitting, the income of laboratory analysis and testing services was 971 million yuan (+ 39.9%), and through the wind service platform, we gave full play to the advantages of integration. 47 orders were signed in 2022q1, of which the safety assessment business orders were full, and the year-on-year growth rate of income reached 53%. The business income of clinical cro & SMO was 370 million yuan (+ 15.2%), maintaining a steady growth. Among them, cro completed four clinical applications, the construction of SMO team was accelerated (number + 26%), and four innovative drugs enabled by 2022q1 were approved for listing.
Biological business and ATU business have strong growth momentum, and ddsu business has been affected in the short term: except that ddsu has achieved revenue of 241 million yuan (- 21.6%) due to CDE's policy to improve clinical quality, biological business and ATU business have achieved revenue of 533 million yuan (+ 26.2%) and 299 million yuan (37.0%) respectively, both maintaining a good growth trend. Among them, the business structure of ATU has been continuously improved. Among the 74 projects, there are 7 and 8 phase II and III projects respectively; The revenue from new molecular types of biological business and biological drugs increased by 110% year-on-year, becoming an important growth point.
Profit forecast and investment rating: we maintained the company's net profit attributable to the parent company from 2022 to 2024 at 86.33/104.06/13.22 billion yuan, with a year-on-year growth rate of 69% / 21% / 27%; The current market value corresponds to 34 / 28 / 22 times of PE from 2022 to 2024. As the leader of cro platform, the company has high performance certainty, prominent valuation and cost performance, and maintains the "buy" rating.
Risk tips: capacity expansion is less than expected, exchange profit and loss risk, covid-19 order is less than expected, etc.
