\u3000\u3000 Porton Pharma Solutions Ltd(300363) (300363)
Event: on January 16, 2022, the company issued the performance forecast for 2021, and it is expected to achieve a revenue of 3.004 billion yuan – 3.108 billion yuan in 2021, with a year-on-year increase of 45% – 50%; The net profit attributable to the parent company was RMB 500 million-532 million, with a year-on-year increase of 54% – 64%, and the performance growth exceeded expectations.
Thanks to the optimization of order structure and the improvement of operation efficiency, the company’s performance in 2021 exceeded the expected growth: in 2021, the company is expected to achieve a revenue of 3.004-3.108 billion yuan, a year-on-year increase of 45% – 50%; The net profit attributable to the parent company was RMB 500 million-532 million, with a year-on-year increase of 54% – 64%. Thanks to the improvement of profitability and operational efficiency, the performance has exceeded expectations. In terms of profitability, the overall gross profit margin and net profit margin of 2021q1-q3 company increased by 2.16 percentage points and 1.02 percentage points respectively, mainly due to the optimization of order structure; In terms of operation efficiency, the overall capacity utilization rate of 2021q1-q3 company was 75%, an increase of 5 percentage points year-on-year.
With sufficient orders and continuous capacity expansion, cdmo of API is expected to maintain a high growth trend:
At present, the company has sufficient orders and continuous capacity expansion, and the API cdmo business is expected to continue to grow at a high rate. In terms of orders, as of 2021q1-q3, the number of service items in clinical phase II and before, clinical phase III, new drug application and marketing stage is 213, 36 and 95 respectively, with obvious order funnel effect. In addition, according to the company’s announcement, in November 2021, the company added $217 million in major orders; In terms of capacity supply, the company has three API cdmo production bases in China, namely Chongqing Changshou, Jiangxi Yichun and Hubei Yingcheng. The overall capacity is expanded to 2000m3. Workshop 109 of Changshou production base was officially put into operation in June 2021, and the capacity utilization rate increased month by month.
The new business of gene cell therapy and preparation cdmo continues to be rapidly deployed:
Gene cell therapy and preparation cdmo business is in the rapid construction period of “building capacity, building reputation and expanding market”. In terms of gene cell therapy cdmo, as of 2021q1-q3, the gene cell therapy cdmo R & D team has 178 people, and the number of gene cell therapy cdmo service projects has reached 16. Suzhou boten has started the construction of the laboratory on the fourth floor of the gene and cell therapy service platform project located in Sangtian Island, Suzhou; In terms of preparation cdmo, by 2021q1-q3, the preparation cdmo R & D team has 75 people and the number of service projects has reached 13. The company actively promotes project delivery.
Investment suggestion: we expect the company to realize net profits of 515 million yuan, 855 million yuan and 1144 million yuan respectively from 2021 to 2023, with a year-on-year increase of 58.7%, 66.1% and 33.8% respectively; Give an investment rating of buy-a.
Risk tip: the order growth is less than expected, the order price of API decreases, and the progress of cdmo of biological drugs and preparations is less than expected.
