\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 59 Pharmaron Beijing Co.Ltd(300759) )
The company released the report for the first quarter of 2022: during the reporting period, the operating revenue was 2.103 billion yuan, a year-on-year increase of 41.19%; The net profit attributable to the parent company was 249 million yuan, a year-on-year increase of 1.31%; The net profit after non deduction from the parent company was 311 million yuan, a year-on-year increase of 30.83%; After adjustment, the net profit attributable to the parent company of non IFRS was 364 million yuan, a year-on-year increase of 39.14%.
High growth in revenue and profit, and continued bright in the mature sector: if calculated at the exchange rate of the same period last year, the operating revenue in the first quarter was + 42.8% year-on-year, the gross profit of main business was + 38.8% year-on-year, and the adjusted non IFRS net profit attributable to the parent company was + 46.2% year-on-year. The operating performance was more bright, and the profitability continued to improve. In terms of sub sectors: 1) laboratory services achieved a revenue of 1.32 billion yuan (year-on-year + 38.7%), maintaining a strong growth. At the same time, under the influence of RMB appreciation, it still achieved a gross profit margin of 42.0% (year-on-year + 1.13 percentage points). We expect bioscience business to further accelerate growth and achieve a high degree of synergy with laboratory chemistry. 2) CMC services achieved a revenue of 462 million yuan (year-on-year + 51.4%), which performed well under the strong R & D demand, and achieved a gross profit margin of 28.7% (year-on-year – 1.74 percentage points). We expect that in addition to the appreciation of RMB, it will also be affected by the increase of fixed operating costs caused by the production capacity of Shaoxing during the reporting period. With the improvement of scale effect, the gross profit margin of the sector is expected to increase gradually. 3) The revenue of clinical research services was 265 million yuan (year-on-year + 33.6%) and the gross profit margin was 4.65% (year-on-year – 7.92 percentage points). We expect that it is mainly related to the advance investment of resources in the period of rapid business growth and the repeated epidemic situation in the reporting period, which has a certain impact on the delivery of clinical business in China. 4) Macromolecular, cell and gene therapy services are in a period of rapid development. With the rapid improvement of customer recognition, the revenue is 51.71 million yuan (year-on-year + 49.4%). Due to the impact of higher operating costs, the gross profit margin is – 4.86% (year-on-year – 36.3 percentage points), which is optimistic about the long-term development as a new business growth point.
Continuously improve the service capacity and inject long-term growth momentum: in 2021, the company’s capital expenditure for internal construction and extension M & A was 2.09 billion yuan (year-on-year + 59.1%) and 1.44 billion yuan (year-on-year + 30.6%) respectively. At the end of 2021, the company’s R & D, production technology and clinical service personnel increased to 13455 (year-on-year increase of 36.9%). While increasing production capacity to meet the growth needs of existing business, Continue to improve the international service platform and focus on the development of the company’s new business. During the reporting period, the company completed the acquisition of pharmaceutical manufacturing services (UK) Ltd in the UK and the integration with Enyuan Pharmaceutical Technology (Beijing) Co., Ltd., further improved the capacity of small molecule cdmo service platform and quantitative pharmacology, and injected new impetus for long-term growth.
Profit forecast and rating: we are optimistic about the sustained and rapid development of the company. It is estimated that the net profit attributable to the parent company from 2022 to 2024 will be 2.16 billion yuan, 2.9 billion yuan and 3.9 billion yuan respectively, with a year-on-year increase of 30.1%, 34.1% and 34.4%; The corresponding PE is 47, 35 and 26 times respectively, maintaining the “buy” rating.
Risk warning: the epidemic affects the operation risk, the decline risk of demand for pharmaceutical R & D services, the loss risk of core technicians, and the risk of exchange rate changes
