\u3000\u3 Guocheng Mining Co.Ltd(000688) 131 Shanghai Haoyuan Chemexpress Co.Ltd(688131) )
Event: on April 26, 2022, the company released the first quarter report of 2022. In 2022q1, the company achieved a revenue of 300 million yuan, a year-on-year increase of 33.02%; The net profit attributable to the parent company was 62 million yuan, a year-on-year increase of 15.06%; The net profit attributable to the parent company after non deduction was 59 million yuan, a year-on-year increase of 9.97%.
2022q1’s revenue increased by 33.02% year-on-year, and the revenue growth was in line with expectations: on the sales side, 2022q1 company achieved a revenue of 300 million yuan, with a year-on-year increase of 33.02%. The front-end tool compound / molecular block business and the back-end API / intermediate development business continued to develop rapidly, and the revenue growth was in line with expectations. On the profit side, in 2022q1, the company realized a net profit attributable to the parent company of 62 million yuan, a year-on-year increase of 15.06%; The net profit attributable to the parent company after non deduction was 59 million yuan, a year-on-year increase of 9.97%. The slowdown of profit side growth is mainly due to more cost investment. In 2022q1, the management expense rate and R & D expense rate were 12.27% and 11.16% respectively, with a year-on-year increase of 4.12 percentage points and 3.12 percentage points respectively.
Drive the steady development of front-end molecular block / tool compound business by expanding products and customers: in terms of product expansion, the number of molecular block / tool compound products of the company has rapidly expanded from 30000 in 2018 to 58600 in 2021. The company has actively carried out research on chiral molecular block library design and development, covid-19 pneumonia tool molecule research and development, drug fragment molecular library development and other projects, At present, the application fields of front-end business products cover cancer, neuroscience, immunology and other hot fields; In terms of customer development, it has established stable cooperative relations with many multinational pharmaceutical enterprises, world-renowned universities, scientific research institutes, cro companies and overseas well-known professional dealers of drug R & D reagents.
The new production capacity is expected to be put into operation gradually, driving the rapid rise of back-end cdmo business: at present, the company has rich project pipelines. By the end of 2021, there are 148 preclinical / phase I clinical, phase II clinical, phase III clinical, new drug listing application stage and approved listing projects respectively. In order to meet the growing demand for orders, the company actively expands the back-end business capacity. In terms of API / intermediate capacity construction, according to the company’s announcement, the first phase of industrialization base invested and built in Ma’anshan will be rapidly promoted in 2021 (the design annual capacity is 680m3), and it is expected to be put into operation in 2022h2; In terms of ADC capacity construction, according to the company’s announcement, an ADC high activity production line invested and constructed by the company in Anhui Haoyuan R & D center will be put into operation in 2021. The two new production lines are advancing rapidly, and some capacity is expected to be released in 2022.
Investment suggestion: we expect the company to realize net profits of 270 million yuan, 382 million yuan and 537 million yuan respectively from 2022 to 2024, with a year-on-year increase of 41.4%, 41.2% and 40.7% respectively; Give an investment rating of buy-a.
Risk tips: new product R & D risk, risk that some product sales are affected by customer project progress, risk of exchange rate change, risk that production capacity is less than expected, etc.
