\u3000\u3 Guocheng Mining Co.Ltd(000688) 076 Jiangsu Sinopep-Allsino Biopharmaceutical Co.Ltd(688076) )
Events
On April 28, Jiangsu Sinopep-Allsino Biopharmaceutical Co.Ltd(688076) released the annual report of 2021 and the first quarterly report of 2022. In 2021, the revenue / net profit attributable to the parent company / net profit attributable to the parent company after deduction were RMB 644 / 115 / 105 million respectively, with a year-on-year increase of 13.58% / – 6.52% / 10.96% respectively; In 2022q1, the revenue / net profit attributable to the parent company / net profit attributable to the parent company after deduction were RMB 134 / 0.16/013 million, with a year-on-year increase of – 19.22% / – 59.45% / – 66.64% respectively.
Brief comment
In 2021, the performance grew steadily, and the rhythm of cdmo order confirmation caused the performance fluctuation in 2022q1. In 2021, the revenue was 644 million yuan, with a year-on-year increase of 13.58%, and the net profit attributable to the parent was 115 million yuan, with a year-on-year decrease of 6.52%. The net profit attributable to the parent after deduction was 105 million yuan, with a year-on-year increase of 10.96%. The performance basically met the expectations. In 2022q1, the revenue was 134 million yuan, a year-on-year decrease of 19.22%, the net profit attributable to the parent company was 16 million yuan, a year-on-year decrease of 59.45%, and the net profit attributable to the parent company after deduction was 13 million yuan, a year-on-year decrease of 66.64%. The performance was slightly lower than expected. We expect that the main reason for the performance fluctuation is the quarterly fluctuation at the demand end of individual customers’ orders and the delay of product delivery. It is expected that the marginal improvement will gradually enter the track of high-speed growth in the future.
The investment of cdmo business resources is increased, and the future growth can be expected. In 2021, the cdmo business achieved a revenue of 511 million yuan, a year-on-year increase of 23.82%, with a bright performance growth. The company has continuously increased its resource investment in cdmo business, established BD teams in the United States and Europe to expand overseas markets, and introduced 13 R & D personnel to improve R & D strength. In addition, the second phase construction of Jiande plant has been started, and it is expected to gradually land a capacity of 400000 liters from 2022 to 2023. We expect that 2-3 varieties will enter the commercialization stage in 2022, and the future volume and performance growth can be expected.
The independent innovation business pipeline has been continuously promoted and positive progress has been made: 1) API: complete the registration and application of fluvistran API in China, the United States and the European Union; 2) Preparation: etibatide injection obtained the drug registration certificate of CDE, and completed the registration application of bivalirudin, olmesartan axetil and amlodipine tablets for injection in China; 3) Innovative drugs: GLP-1 receptor agonists submit pre ind registration declaration, etc.
Investment advice
Considering the order fluctuation of cdmo sector, we lowered the profit forecast for 22-23 years. It is estimated that the net profit attributable to the parent company in 20222024 will be 153 / 192 / 251 million yuan respectively (37% / 41% respectively in 22-23 years), corresponding to 35 / 28 / 22 times of PE in 20222024, maintaining the buy rating.
Risk tips
Risk of lifting the ban, loss of core technicians, supervision risk, IP protection risk, investment risk, exchange rate fluctuation risk, raw material price rise risk, safety production and environmental protection risk.
