\u3000\u30 Beijing Zznode Technologies Co.Ltd(003007) 25 Pharmablock Sciences (Nanjing) Inc(300725) )
Event: the company released the annual report of 2021 and the first quarterly report of 2022. In 2021, the operating revenue will reach 1.2 billion yuan (+ 17.6%); The net profit attributable to the parent company was 490 million yuan (+ 164.1%); The net profit attributable to the parent company after deducting non profits was 230 million yuan (+ 34.2%). In the first quarter of 2022, the operating revenue was 340 million yuan (+ 17.4%); Net profit attributable to parent company: 70 million yuan (+ 1.5%); The net profit attributable to the parent company after deducting non profit is 70 million yuan (+ 0.9%).
The performance is under pressure in the short term, and the expenses rise slightly during the period. In 2021, the revenue was 1.2 billion yuan (+ 17.6%), of which the revenue of cdmo business was 460 million yuan (+ 33.48%). Excluding the phased impact of the delivery cycle of a major customer’s commercial project, the revenue increased by 52.24% year-on-year in 2021. In 2021, about 70% of the company’s revenue was denominated in US dollars. Excluding the impact of foreign exchange, the revenue growth rate was 22.22%. In 2021, the company’s administrative expenses were 150 million yuan (+ 24.08%); The R & D cost is 110 million yuan (+ 25.40%); The financial expense is RMB 20 million (- 19.48%). Revenue growth continued to slow down in 2021 and the first quarter of 2022, mainly due to the impact of the epidemic and the limited progress of production, operation and production capacity in Nanjing, Jiangsu and Shaoxing, Zhejiang. In 2022, the company will continue to optimize revenue structure, improve operating efficiency, accelerate capacity construction and accelerate performance growth.
Consolidate the technical advantages of molecular blocks and expand the extended field of products and services. In 2021, the company increased its investment in spot products and added more than 1000 popular molecular blocks. The company continues to add weight to the design of new molecules, and completed the design of more than 16000 high-quality compounds in 2021, so as to further expand the scope of molecular blocks, enhance the competitiveness of the company and maintain the leading position in the industry. The company continued to strengthen the efficiency of order delivery, completed more than 7000 orders below the kilogram level and more than 800 projects above the kilogram level in 2021, and completed the delivery of more than 20000 compounds. The success rate of the project is more than 90%, which can better help customers promote new drug R & D projects.
Accelerate capacity expansion and eliminate capacity bottlenecks. In March 2022, the newly built 501 capacity multi-functional GMP automatic workshop was officially opened, with a new reactor volume of 165 cubic meters. The construction of 502 and 503 workshops is accelerated. The design capacity of 502 workshop is 94.3 cubic meters, equipped with three clean area production lines and continuous flow equipment; Workshop 503 has a design capacity of 190.6 cubic meters and is equipped with two clean area production lines. With the accelerated implementation of production capacity, it will eliminate the company’s production bottleneck, provide production capacity guarantee for undertaking the integrated production of Chinese and foreign customers from clinical to commercialization, from raw materials to GMP intermediates and API, and drive performance growth.
Profit forecast and rating. We expect that the EPS from 2022 to 2024 will be 1.97 yuan, 2.68 yuan and 3.52 yuan respectively, corresponding to the current stock price valuation of 39 times, 29 times and 22 times respectively, maintaining the “buy” rating.
Risk warning: the order is not as expected; The extended expansion is less than the expected risk.
