\u3000\u3000 Zhejiang Jiuzhou Pharmaceutical Co.Ltd(603456) (603456)
Event: on January 18, 2022, the company issued the announcement on the advance increase of annual performance in 2021. In 2021, the company is expected to realize the net profit attributable to the parent company of 609-685 million yuan, with a year-on-year increase of 60.00% – 80.00%.
Thanks to the continuous growth of cdmo business, the performance will achieve high growth in 2021:
In 2021, the company expects to realize a net profit attributable to the parent company of 609-685 million yuan, with a year-on-year increase of 60% – 80.00%. The high growth of the company’s performance mainly benefits from the rapid development of cdmo business. The company deeply expands customers and order lines, and the high growth of cdmo business is expected to continue. Among them, in terms of customers, the company has formed deep embedded cooperative relations with international pharmaceutical giants such as Novartis, Roche, GSK, Gilead and first sanggong; In terms of orders, as of 2021h1, the number of clinical phase I / II, clinical phase III and listed projects was 471, 41 and 18 respectively, and the number of clinical phase I / II and listed projects increased by 96 and 7 respectively year-on-year. The volume of subsequent commercial projects is expected to promote the high growth of cdmo business.
Continue to strengthen the construction of technology platform and production capacity, and create industry-class cdmo services:
In terms of technology, the company has built several leading technology platforms including chiral catalysis, continuous reaction, fluorine chemistry, enzyme catalysis and peptides, and strengthened the layout of new technology platforms such as oligonucleotides, so as to provide effective guarantee for the company to undertake more complex projects. In terms of production capacity, the company recently strengthened the cdmo layout of APIs and preparations through the acquisition of kangchuanji pharmaceutical and Hangzhou Taihua. Among them, Hangzhou Taihua is a API production plant invested by Teva in China, covering an area of 115 Mu and having 210 employees. Its production management is carried out in strict accordance with GMP standards. The merger and acquisition of Hangzhou Taihua is conducive to expanding the company’s production capacity and deepening the cooperative relationship with Teva.
Investment suggestion: we expect the company to realize net profits of 652 million yuan, 853 million yuan and 1.103 billion yuan respectively from 2021 to 2023, with a year-on-year increase of 71.3%, 30.8% and 29.4% respectively; Give an investment rating of buy-a.
Risk tips: order growth is less than expected, API order price drops, production safety accident risk, business expansion is less than expected risk, etc.
