\u3000\u3000 Wuxi Apptec Co.Ltd(603259) (603259)
Event: the company issued the announcement of performance increase in 2021. In 2021, it is expected to realize revenue of 22.82-22.9 billion yuan (year-on-year + 38.0-38.5%), net profit attributable to parent company of 4.97-5.03 billion yuan (year-on-year + 68.0-70.0%), non net profit attributable to parent company of 4.01-4.05 billion yuan (year-on-year + 68.0-70.0%), net investment income of the company during the reporting period of about 1.66 billion yuan, and fair value loss of H-share convertible bond derivatives of about 1 billion yuan.
The quarterly performance grew steadily and continued to maintain quarter on quarter growth. According to the announcement, the revenue of 2021q4 is 6.30-6.38 billion yuan (year-on-year + 33.4-35.2%), maintaining a positive growth month on month, the net profit attributable to the parent company is 1.41-1.47 billion yuan (year-on-year + 138.4-148.4%), and the net profit not attributable to the parent company is 900-950 million yuan (year-on-year + 23.2-29.7%).
All business sectors performed well and cooperated to promote the sound development of the company. In 2021, 732 molecules were added to the small molecule cdmo sector, including 42 commercial projects (Q4 + 5), 49 phase III clinical projects (Q4 + 2), and 39 clinical phase ii-q4 + 10 and 2 clinical phase III). There are 53 preclinical + phase I (Q4 + 8) and 8 clinical phase II (Q4 + 2) in ATU sector; 11 clinical phase III projects. Ddsu sector applies for 26 ind (H2 + 10) and 23 CTA (H2 + 11). The clinical trial business has 1 ind, 3 clinical phase III (+ 2), 14 clinical phase II and 73 clinical phase I (+ 1) projects. The company has sufficient orders and strong demand. With the continuous optimization of operation efficiency and capacity utilization, the scale effect is further reflected.
The integration and globalization layout drive steady development, and the market share continues to increase. On January 10, 2022, the company disclosed at the J.P. Morgan health conference that the market share of the company’s drug discovery business in the Chinese market was 54%, the market share of preclinical + clinical cro business in the Chinese market was 11%, the market share of small molecule cdmo business in the Chinese market was 23%, and the market share of CGT cdmo business in the global market was 6.7%, ranking third in the world. Guided by innovation and R & D, the company adheres to the global layout of “integration and end-to-end”, has strong comprehensive competitiveness and drives the long-term and steady development of performance.
Profit forecast: Based on the company’s good performance and quality, we expect the company’s operating revenue to be 22.863 billion yuan, 33.706 billion yuan and 44.952 billion yuan from 2021 to 2023, with a year-on-year increase of 38.3%, 47.4% and 33.4%; The net profit attributable to the parent company was 4.985 billion yuan, 7.372 billion yuan and 9.465 billion yuan respectively, with a year-on-year increase of 68.4%, 47.9% and 28.4%, corresponding to 70 / 47 / 37 times of PE from 2021 to 2023.
Risk factors: the risk of declining R & D investment and outsourcing demand in the pharmaceutical industry, the risk of internationalization not meeting expectations, the risk of repeated global epidemic, competition risk, policy risk, etc.
