\u3000\u3000 Pharmaron Beijing Co.Ltd(300759) (300759)
Event: the company released the performance forecast for 2021. The annual operating revenue was 7.341-7.495 billion yuan (+ 43% – 46% YoY), the net profit attributable to the parent company was 1.583-1.700 billion yuan (+ 35% – 45% YoY), and the non net profit attributable to the parent company was 1.281-1.361 billion yuan (+ 60% – 70% YoY). The performance exceeded the market expectation. The operation efficiency has been continuously improved, and the annual performance has exceeded the market expectation. In 2021, the company’s main business income maintained rapid growth, and the growth rate of net profit deducted from non parent company exceeded the growth rate of revenue, reflecting the improvement of overall operating efficiency. The annual non recurring profit and loss of the company decreased slightly compared with the previous year, about 300-350 million yuan. In 2021, Q4 company achieved revenue of RMB 2.040-2.194 billion (+ 31.8% – 41.7% YoY), net profit attributable to parent company of RMB 543-660 million (+ 41.8% – 72.3% YoY), and net profit attributable to non parent company of RMB 350-430 million (+ 79.5% – 120.51% YoY).
The international layout has been steadily promoted, and the integration construction has achieved initial results. In terms of internationalization, the company acquired British ABL company and APL company to supplement the overseas production capacity of cgtcdmo and small molecule API respectively. Among them, cgtcdmo has achieved rapid growth, with an estimated order of about US $10 million in 21 years; In terms of integration construction, the company effectively responded to the repeated epidemic in China, and Shaoxing base was completed in time and can be officially put into use in 22 years, laying the foundation for the commercial production of small molecule cdmo of the company. The company’s large capacity is expected to divert customers in the clinical stage to commercial production and maintain the company’s sustained high growth.
Profit forecast, valuation and rating: the company is a leading pre clinical cro enterprise, and the one-stop business layout is expected to open up growth space. Considering that its performance forecast in 2021 is higher than expected, we raised EPS from 21-23 to 2.02/2.71/3.70 yuan (8.8% / 11.5% / 17.9% respectively), corresponding to a year-on-year increase of 37.06% / 33.80% / 36.79% in net profit attributable to parent company, corresponding to 61 / 46 / 34 times of PE in 21-23 years, maintaining the “buy” rating.
Risk warning: repeated outbreaks in China; The R & D investment of enterprises is less than expected; Increased competition; The progress of the company’s new business layout is less than expected.
