Event: recently, the company issued an announcement of pre-increase in its performance for the first half of 2022. 2022H1 expects to achieve a net profit of 180 million yuan to 200 million yuan, an increase of 54.70% to 71.89% over the same period last year. It is expected to achieve a net profit of 170 million yuan to 190 million yuan, an increase of 73.51% 93.92% over the same period last year, and the performance growth is in line with expectations.
2022H1's homing net profit is expected to grow 55% to 72% compared with the same period last year, and the performance growth is in line with expectations. According to the company's half-year performance advance announcement issued by the company, 2022H1 expects the company to achieve a net profit of 180 million yuan to 200 million yuan, an increase of 54.70% to 71.89% over the same period last year. It is estimated that the net profit will be deducted from 170 million yuan to 190 million yuan, an increase of 93.92% over the same period last year. Thanks to the continuous landing of the CDMO project, the rapid development of API and preparation business, and the smooth progress of small nucleic acid business and COVID-19 pharmaceutical intermediates business, 2022H1 performance growth is in line with expectations.
Merck & Co Inc and other major projects continue to land, driving the sustained and rapid development of CDMO business company CDMO business sustained and rapid development, has established close cooperative relations with famous pharmaceutical companies at home and abroad. Among them, the company and Merck & Co Inc in pet drugs, veterinary drugs, animal health and other areas reached a 10-year CDMO strategic cooperation agreement. According to the company announcement, by the end of 2021, nine projects in the first phase of Merck & Co Inc's CDMO cooperation project have been carried out at different stages, and the technology transfer has been gradually completed and is expected to be commercialized soon.
The API business is expected to gradually usher in marginal improvement in 2022.
The company fully practices the development route of multi-category and multi-market of API business. According to the company announcement, by the end of 2021, a total of 43 API varieties have been studied, of which 14 have been converted to production, 11 varieties have been submitted to overseas market registration certification, and 8 varieties have been submitted to domestic CDE registration. The price of the core variety of sartan APIs basically bottomed out in 2021H2. Considering the conduction effect of the upstream raw material price increase, the API business is expected to usher in marginal improvement in 2022.
Implement the development strategy of "technology transfer + independent declaration + domestic MAH cooperation", and the preparation business develops continuously and rapidly.
The company actively implements the preparation management and development strategy of "technology transfer + independent declaration + domestic MAH cooperation", and the preparation business is in the stage of rapid development. Among them, in the domestic market, perindopril tert-butylamine tablets and pregabalin capsules won the bid for the fourth batch of national centralized procurement; Atto vastatin calcium tablets, losartan potassium tablets and lisinopril tablets were successfully collected and renewed. 13 provinces in Guangdong won the bid and Jiangsu / Shandong regional collection. Thanks to the rapid release of collected varieties and the rapid expansion of the off-standard market, the preparation business in 2022 is expected to continue the high growth trend in the past.
Investment advice: we expect the company to achieve a net profit of 398 million yuan, 467 million yuan and 597 million yuan respectively from 2022 to 2024, an increase of 179.4%, 17.3% and 27.9% respectively over the same period last year.
Risk hints: API price fluctuation risk, exchange rate fluctuation risk, R & D progress is not as expected.