\u3000\u3000 Porton Pharma Solutions Ltd(300363) (300363)
Event:
The company announced that the performance of 2021 was expected to increase, and the annual performance exceeded the expected growth. In 2021, the company expects to achieve an operating revenue of 3.004 ~ 3.108 billion yuan, with a year-on-year increase of 45% ~ 50%; The net profit attributable to the parent company was 500 ~ 532 million yuan, with a year-on-year increase of 54% ~ 64%; Deduct the net profit not attributable to the parent company of RMB 519 ~ 548 million, with a year-on-year increase of 80% ~ 90%; The non recurring loss is about 7 million yuan.
Comments:
The performance increased significantly in the fourth quarter, reaching a record high. By quarter, Q4 achieved an operating revenue of RMB 974 ~ 1078 million in 2021, with a year-on-year increase of 66.9% ~ 84.7%; The net profit attributable to the parent company was 139 ~ 171 million yuan, with a year-on-year increase of 63.1% ~ 100.6%; The net profit deducted from non parent company was 166 ~ 195 million yuan, with a year-on-year increase of 142.1% ~ 184.2%, contributing to a new high of revenue and profit in a single quarter.
The profit margin increased significantly and the profitability continued to improve. According to the disclosed data, the median net profit margin attributable to the parent company was 16.9% in 2021 and 15.7% in 2020, with a year-on-year increase of + 1.2 PP; The net interest rate excluding non parent company was 17.4% and 13.9% in 2020, with a year-on-year increase of + 3.5 PPS. The company continued to improve profitability by improving capacity utilization and operation efficiency, optimizing product structure.
New businesses are still growing, and small molecule cdmo is developing strongly. According to the company’s disclosure, in 2021, the preparation cdmo and gene cell therapy cdmo business was still in the growth stage of “building capacity, building reputation and expanding the market”, with an annual loss of about 100 million yuan (43 million yuan in 2020). If this loss is added back, the company’s small molecule cdmo business will realize a net profit of more than 600 million yuan in 2021, with a year-on-year increase of more than 60%, Contribute high growth and high stability to the company’s performance.
New business construction + small molecule capacity expansion promoted the continuous and high growth of the company’s performance. In 2021, the company made many breakthroughs in its new business. In the first three quarters, the company had 11 cdmo service customers for gene cell therapy, reached strategic cooperation with 5 biotech companies, 12 cdmo service customers for preparations, and reached strategic cooperation with Dannuo pharmaceutical to jointly explore and establish an integrated service mode of “API + Preparation”, which is expected to become the support point for the company’s long-term development. In 2021, the company’s Changshou 109 workshop was put into use and acquired 70% equity of Yuyang pharmaceutical, expanding the small molecule cdmo production capacity to 2000m3 in total, supporting the company’s rapidly growing order demand.
Profit forecast: we raised our profit forecast for the company. It is estimated that the operating revenue of the company from 2021 to 2023 will be RMB 3.049 billion, 4.693 billion and 6.113 billion, with a year-on-year increase of 47.2%, 53.9% and 30.3%; The net profit attributable to the parent company was 525 million yuan, 847 million yuan and 1145 million yuan respectively, with a year-on-year increase of 61.9%, 61.3% and 35.1%, corresponding to 83 / 51 / 40 times of PE from 2021 to 2023.
Risk factors: increased industry competition, China’s international policies, loss of core technicians and other risks
