\u3000\u3000 Wuxi Apptec Co.Ltd(603259) (603259)
Event: on January 18, 2022, the company issued the announcement of annual performance increase in 2021. In 2021, the company is expected to achieve revenue of 22.819 billion yuan - 22.902 billion yuan, a year-on-year increase of 38.0% - 38.5%; The net profit attributable to the parent company is expected to be RMB 4.973 billion-5.032 billion, with a year-on-year increase of 68.0% - 70.0%.
Thanks to the strong growth of chemical business, the performance in 2021 continued to grow high:
In 2021, the company is expected to achieve revenue of 22.819 billion yuan - 22.902 billion yuan, a year-on-year increase of 38.0% - 38.5%; The net profit attributable to the parent company is expected to be RMB 4.973 billion-5.032 billion, with a year-on-year increase of 68.0% - 70.0%. The strong demand for crdmo business orders and the strong growth of small molecule drug discovery services promoted the accelerated growth of the company's sales and sustained high growth of profits in 2021.
Each business segment is booming, and the global competitiveness of Wuxi Apptec Co.Ltd(603259) is further highlighted:
At present, chemical business, testing business, biological business, cell and gene therapy ctdmo business, China new drug R & D service department and other sectors are booming, and the company's global competitiveness is further strengthened.
(1) chemical business is the core driving force for the company's medium and short-term performance growth. Crdmo business has strong order demand. The company drives the rapid growth of this business by strengthening production capacity. In terms of orders, by the end of 2021, there were 1318, 257, 49 and 42 phase I clinical and preclinical, phase II clinical, phase III clinical and commercial projects respectively, with obvious funnel effect; In terms of production capacity, in 2021, the company acquired Bristol Myers Squibb's preparation production base in kuwei, Switzerland, and built a Delaware API / preparation production base in the United States, which is planned to be put into operation in 2024;
(2) the testing business is becoming more and more mature, and the leading position in China such as SMO business is prominent. It has 4500 employees and covers 1000 hospitals, and the number of employees maintains the leading position in the industry in China;
(3) ddsu has entered the harvest period, and the win-win new drug has achieved success. By the end of 2021, a total of 232 projects were under progress, of which the pipeline realized the first product listing application in July 2021, and the company is expected to gradually enjoy the milestone and sales share income;
(4) biology business focuses on building new capabilities and technologies such as oligonucleotides, cancer vaccines, protac, carrier platform and innovative drug delivery system. At present, it covers 1300 customers and serves the top 20 multinational pharmaceutical enterprises in the world;
(5) the order funnel effect of cell and gene therapy ctdmo business is becoming more and more obvious and continues to expand global production capacity. This business is expected to become the core driving force of the company's medium and long-term performance growth. In terms of orders, by the end of 2021, the number of preclinical / phase I clinical, phase II clinical and phase III clinical projects was 53, 8 and 11 respectively, and 4 projects were in the stage of submitting listing application soon; In terms of production capacity, Shanghai Lingang Holdings Co.Ltd(600848) base (process R & D and commercial production center) and Philadelphia base (improving testing capacity) have been put into operation.
Investment suggestion: we expect the company to realize net profits of 5.021 billion yuan, 6.783 billion yuan and 9.231 billion yuan respectively from 2021 to 2023, with a year-on-year increase of 69.6%, 35.1% and 36.1% respectively; Give an investment rating of buy-a.
Risk tips: the growth of order quantity does not meet expectations, the intensification of market competition leads to the decline of order price, the prosperity of the industry is less than expected, the development of overseas epidemic affects the orders of overseas pharmaceutical enterprises, etc.
