\u3000\u3000 Porton Pharma Solutions Ltd(300363) (300363)
The company issued the annual performance forecast for 2021. It is expected to achieve an operating 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 500-532 million, with a year-on-year increase of 54% – 64%; The net profit deducted from non parent company was 519-548 million yuan, with a year-on-year increase of 80% – 90%.
Key points supporting rating
The company’s operating revenue and profitability have been continuously enhanced by strengthening external expansion and internal training. In 2021, under the background of the steady growth of global pharmaceutical R & D pipeline and the increasing trend of pharmaceutical R & D and production outsourcing, the company continued to expand and enrich product pipeline and continuously improve technical capacity, product delivery capacity and order acquisition capacity; At the same time, with the further improvement of the company’s capacity utilization and operation efficiency and the further optimization of product structure, the company’s profitability has been continuously improved.
New business segment: preparation cdmo and cell gene therapy cdmo are gradually developed. In 2021, the two new business segments of the company’s preparation cdmo and gene cell therapy cdmo continued to “build capacity, build reputation and expand the market”, which was still in the stage of loss as a whole, reducing the net profit attributable to the shareholders of the listed company in the consolidated statements by about 100 million yuan. Among them, the preparation cdmo business is in the development and growth period. In addition, the core team of boten biology has been basically established, with more than 240 employees. Most of the core backbones come from large foreign pharmaceutical enterprises and have many years of R & D and production experience in the fields of biopharmaceutical, cell and gene therapy. At present, the projects undertaken by boten biology come from Chinese customers, mainly in the direction of cell therapy.
The company’s API cdmo business capacity has been steadily promoted. According to the company’s announcement, the company currently has three small molecule API cdmo production bases in China, with a total capacity of about 2000 cubic meters. The production capacity of Changshou production base is about 900 cubic meters, of which the production capacity of 109 multi-functional GMP workshop officially put into operation in June 2021 is about 180 cubic meters; The production capacity of Jiangxi Boteng production base is about 500 cubic meters; In August 2021, the company completed the acquisition of 70% equity of Hubei Yuyang pharmaceutical, with a new capacity of about 580m3. Now, the workshop of Yuyang pharmaceutical is being gradually transformed as planned. In addition, Changshou 301 workshop and Jiangxi Boteng phase II project are also in normal progress.
Valuation
According to the company’s performance forecast for 2021, we raised the profit forecast. It is estimated that the company’s net profit from 2021 to 2023 will be 524, 874 and 1067 million yuan, corresponding to EPS of 0.97, 1.61 and 1.97 yuan, maintaining the buy rating.
Main risks of rating
Risks of delisting or large-scale recall of innovative drugs and fluctuations in demand in the end market; Risk of poor promotion of new business; Exchange rate fluctuation risk; Policy risk; Brain drain risk, etc.
