\u3000\u30 Guangdong Tengen Industrial Group Co.Ltd(003003) 63 Porton Pharma Solutions Ltd(300363) )
Resume Porton Pharma Solutions Ltd(300363) development history. After the business setback in 2017, the management timely reflected and adjusted, and finally realized the successful strategic transformation:
Marketing reform: expand overseas MNC through “3 + 5” strategy; Expand overseas biotech through the acquisition of J-star; Comply with China’s MAH policy, layout the Chinese team and expand Chinese customers;
R & D Construction: increase R & D personnel recruitment and R & D investment, and build key technologies of cdmo industry such as continuous flow, enzyme catalysis, synthesis of highly active substances, GMP hydrogenation, crystallization, milling and supercritical fluid chromatography;
Talent binding: the annual equity incentive will be restored in 2019 to bind senior executives and core talents;
Business extension: cdmo business is extended from the front-end intermediate to the back-end GMP level API and preparation, opening its own business space.
Improve the last link of cdmo preparation business and truly realize the integrated business layout of chemical cdmo:
According to our calculation, the global api-cdmo market is between us $30 billion and US $40 billion, and the preparation cdmo market is between us $10 billion and US $20 billion. China is still in its infancy. Porton Pharma Solutions Ltd(300363) will lay out the preparation business in 2019, reap RMB 2016 million in related businesses in 2021, and achieve a “0-1” revenue break, which has a certain first mover advantage.
Grasp the new era of CGT and accelerate the construction of cgt-cdmo business capacity:
The global CGT industry is in a period of rapid development, which is expected to drive the rapid growth of cgt-cdmo industry. The outsourcing rate of CGT industry will be significantly higher than that of other industries due to the higher proportion of biotech in CGT industry, higher production costs, higher requirements for capacity flexibility, and production process IP mastered by cdmo enterprises Porton Pharma Solutions Ltd(300363) laid out cgt-cdmo business in 2018 and has accumulated certain technology in LV suspension serum-free process development and production platform, AAV directional evolution and AAV insect cell system production.
Profit forecast and investment rating: it is estimated that the operating revenue of the company from 2022 to 2024 will be 8.203, 8.487 and 9.456 billion yuan, the net profit attributable to the parent company will be 1.474, 1.610 and 1.850 billion yuan, and the corresponding PE will be 26x, 24x and 21x. For the first time, give a “buy” rating.
Risk tips: 1. Sino US trade friction; 2. The covid-19 epidemic in China has intensified; 3. The competition pattern of chemical cdmo industry has deteriorated; 4. Fluctuations in raw material costs; 5. The acceptance of orders was less than expected.
