\u3000\u3 Shengda Resources Co.Ltd(000603) 259 Wuxi Apptec Co.Ltd(603259) )
Event: the company released Q1 performance in 2022 and realized an operating revenue of 8.474 billion yuan (+ 71.18% YoY); The net profit attributable to the parent company was 1.643 billion yuan (+ 9.54% YoY); The net profit deducted from non parent company was 1.714 billion yuan (+ 106.52% YoY); After adjustment, the net profit of non IFRS was 2.053 billion yuan (+ 85.82% YoY), with strong growth and performance in line with expectations.
Wuxi chemistry has strong growth and its annual revenue is expected to double. In 2022, q1wuxi chemistry achieved revenue of 6.12 billion yuan (+ 102.1% YoY), and the annual revenue is expected to double that of 2021. Among them, the revenue of small molecule drug discovery service was 1.74 billion yuan (+ 46.6% YoY), and more than 90000 compounds were synthesized to guide downstream projects; The revenue from process R & D and production reached 4.37 billion yuan (+ 138.1% YoY), with a total molecular number of 1808, including 42 commercial projects. Excluding covid-19 commercialization project, the business revenue of the section increased by 52.3% year-on-year, reflecting strong endogenous growth.
The stable development of multi section business helps the diversified growth of the company. The company’s non chemical business maintained steady growth. Q1 test business achieved revenue of 1.28 billion yuan (+ 31.7% YoY), including laboratory analysis and test service revenue of 910 million yuan (+ 39.9% YoY), clinical cro and SMO business revenue of 370 million yuan (+ 15.2% YoY); The biological business realized a revenue of 533 million yuan (+ 26.17% YoY), and the revenue of new molecular types increased by 110% year-on-year, including protac, nucleic acid drugs, ADC, etc; Cell gene therapy business has achieved revenue of 300 million yuan (+ 37.0% YoY). Eight clinical phase III projects are being implemented, and four projects are about to enter BLA; Ddsu business achieved a revenue of 240 million yuan (- 21.6% YoY), mainly because the business entered iterative upgrading, transformation, R & D and newer targets and more complex compounds, and the project implementation cycle was longer.
Profit forecast, valuation and rating: the company is a one-stop CXO leader, maintaining a net profit forecast of RMB 8.203107.03/13.388 billion for 22-24 years, with a year-on-year increase of 60.9% / 30.5% / 25.1% respectively. The PE of A-Shares corresponding to 22-24 years is 35 / 27 / 22 times, maintaining the “buy” rating; The corresponding PE of H shares for 22-24 years is 31 / 24 / 19 times, maintaining the “buy” rating.
Risk warning: the risk of epidemic persistence; The R & D investment of pharmaceutical enterprises is less than expected; Increased competition.
