In depth report of Shan Dong Kexing Bioproducts Co.Ltd(688136) company: leading enterprise of recombinant protein drugs and unique overseas commercialization platform

\u3000\u3000 Shan Dong Kexing Bioproducts Co.Ltd(688136) (688136)

“R & D + overseas commercialization” two wheel drive, the company’s development can be expected in the future. Shan Dong Kexing Bioproducts Co.Ltd(688136) focus on drug research and development in the treatment fields of antiviral, tumor and immunity, blood, digestion and degenerative diseases. Relying on the three biotechnology systems of eukaryotic cell technology, prokaryotic cell technology and micro ecological living bacteria technology, as well as the five technology platforms of recombinant protein secretion and expression platform, protein drug industrialization platform, long-term recombinant protein platform, micro ecological agent R & D and industrialization platform and strain technology platform, the company actively arranges the fields of new proteins, new antibodies and nucleic acid drugs, Committed to becoming a leader in high-quality biological drugs and serving patients around the world; On the other hand, taking advantage of more than 20 years of overseas commercialization, the company adheres to the “three high and one fast” standard, speeds up product introduction, further enriches the product pipeline portfolio in key fields such as anti-tumor and immunity, leads the new model of overseas commercialization platform, becomes the “expert” of Chinese pharmaceutical enterprises to the sea and creates a new growth engine.

The main business grew steadily and the reserves of projects under research were abundant.

From 2017 to 2020, the company achieved operating revenue of RMB 616 million, RMB 891 million, RMB 1191 million and RMB 1220 million respectively, with a compound annual growth rate of about 25.60%, showing a steady growth trend. Although the growth rate has slowed down under the influence of adverse factors such as the epidemic, the market share of core products such as yipuding and sirojin has been further consolidated and maintained a leading market position.

In terms of R & D, the company continues to increase investment, carry out in-depth development around listed products, develop new dosage forms, expand indications and long-term products, so as to improve the synergy of existing products and enhance the market competitiveness of existing products. At present, the company has 36000iu clinical project of human erythropoietin injection, pegylated human granulocyte stimulating factor injection and human interferon α 9 research projects, including the 2B spray project, the long acting growth hormone project (Fc fusion protein) and so on, involve various fields such as antiviral, tumor and immunology, blood and so on.

Accelerate the introduction of products and projects, and highlight the ability of overseas commercialization platforms.

The company has more than 20 years of overseas commercialization experience. Compared with the current China Meheco Group Co.Ltd(600056) enterprises mainly export APIs overseas, the company has realized the direct export of stock solutions and preparations in many overseas countries. At present, the company has achieved market access and sales through more than 30 countries and regions such as Brazil, the Philippines and Egypt.

The company and Zhejiang Hai Chang bio signed a cooperation agreement in April this year to cooperate in the cooperative development and commercialization of the HC007 project (for the treatment of metastatic breast cancer and other malignant tumors), and finally get the HC007 technology and the listing permission in addition to the US market. In June, the company also obtained exclusive commercial licensing rights in all countries and regions except the Chinese mainland, Japan, Europe and North America, which was injected into infliximab in Taizhou. With the promotion of the company’s overseas commercialization strategy, the company’s core competitiveness in the international market will be further improved.

Profit forecast and investment rating: it is estimated that the operating revenue of the company from 2021 to 2023 will be RMB 1.231 billion, 1.417 billion and 1.629 billion, with a year-on-year increase of 0.9%, 15.1% and 15.0%; The net profit attributable to the parent company was 101, 157 and 210 million yuan respectively, with a year-on-year increase of – 27.3%, 55.3% and 33.6%, corresponding to EPS of 0.51, 0.79 and 1.06 yuan and PE of 56 / 34 / 25 times from 2021 to 2023.

Risk factors: the risk of rising raw material costs, the risk of product R & D progress falling short of expectations, the risk of industrial policy changes, covid-19 epidemic and other uncertain risks.

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