Beacaitu started with gene editing technology and gradually expanded its business territory, covering gene editing, model animals, preclinical pharmacological efficacy evaluation and antibody development. formed an one-stop antibody new drug development platform: the company's business layout takes gene editing as the starting point, in-depth layout of antibody new drug development, with the improvement of business layout, gradually entered the performance cash period, the company achieved revenue of 355 million yuan in 2021 An increase of 39.84% from January to April 2022, with revenue of 117 million yuan, an increase of 67.03% over the same period last year. With the launch of the company's "thousands of mice" plan, it is expected to integrate the company's four major sectors of business and achieve rapid release of performance.
Humanized antibody RenMab platform is the core competitiveness of the company, and is expected to build a Chinese version of "Regeneration Yuan": based on the company's advanced Mb-level gene editing technology, a RenMab platform is constructed. Compared with the traditional antibody drug discovery platform, it can screen out antibody drugs with stronger specificity, high affinity and rich diversity, and further form a new drug discovery technology platform for monoclonal, double, double anti-ADC, GPCR and TCRm antibodies. It has been approved by Merck, a big pharmaceutical company. Relying on this platform and excellent pipeline development capabilities, the company is expected to become a Chinese version of the "recycled yuan".
"Thousand mice Wankang" to strengthen business capacity building, accelerate the performance release of various sectors: the company's diversified business, through the "Thousand Mouse Wan Kang" program to achieve 1) make full use of the company's dominant gene editing technology platform, 2) reserve rich model animal strains, 3) rapidly promote the preclinical pharmacological and efficacy evaluation of drugs, 4) develop antibody drugs with a large number of potential targets. While maintaining the capacity building of various business sectors, each business has maintained rapid growth. in 2021, the revenue of model animals was 108 million yuan, an increase of 63% over the same period last year, and the revenue of preclinical pharmacology and efficacy evaluation was 106 million yuan, an increase of 40% over the same period last year. Antibody development achieved revenue of 89 million yuan, an increase of 116% over the same period last year, and gene editors realized business income of 51 million yuan due to domestic demand, a decrease of 26% over the same period last year. All business sectors maintained strong growth. With the implementation of the "thousands of mice" plan, on the one hand, it will push up the company's business barriers, on the other hand, it will reserve more resources for follow-up business development, which is expected to achieve rapid performance growth.
Profit forecast and investment rating: the company is a scarce target for the development of antibody drugs in China. We estimate that the revenue of the company in 2022-2024 will be RMB 587 million, respectively. Due to the diversity of business, we use the segment valuation method. We believe that the reasonable market capitalization of Biossett in 2022 is about HK $10.4 billion, with a corresponding share price of HK $29.7, which is 16% higher than the closing price of HK $25.6 on September 9, 2022. Consider the high growth of the company, gradually enter the performance cash period, cover for the first time, and give a "buy" rating.
Risk hint: new drug research and development is less than expected risk, industry competition aggravates risk, exchange profit and loss risk
