API / Intermediates: deep ploughing in the field of high-end antibiotics and antiviruses, the company has become one of the major global suppliers of tazobactam APIs / intermediates, sulbactam APIs / intermediates and lovir drug intermediates.
Among them, the core raw material prices of Batan series and Pei Nan series products have dropped, and the upstream cost pressure has been gradually alleviated. With the gradual recovery of follow-up market demand, Batan and Penan series of API business is expected to improve marginally. In addition, the company quickly cut into the field of antiviral drugs through the acquisition of Altong Pharmaceutical, and planned a new production capacity project with an annual production capacity of 616 tons of navir intermediates (including ketone, chlorohydrin and 2R-epoxy). The project has been completed and capacity is gradually released according to terminal demand.
CDMO: continuously strengthen the layout of CDMO, a number of projects continue to rapidly implement the company through a joint venture with Lingkai Pharmaceutical to set up Lingfu Pharmaceutical Research Institute and set up a wholly-owned subsidiary Xiangtai Scientific way to increase the layout of investment in CDMO business. With the help of Lingkai Pharmaceutical's R & D capability and customer resource advantages, combined with its own production capacity advantages, the company provides customers with one-stop service from advanced pharmaceutical intermediates to API. In terms of order items, according to the company announcement, as of 2022H1, the amount of contracts signed by the company has reached 374 million yuan, and the amount of projects that have been executed has reached 118 million yuan. CDMO business continues to achieve rapid development.
New material: active layout of lithium battery electrolyte additive business
The company complies with the rapid development of new energy vehicle power battery industry trend, combined with its own chemical process technology, engineering equipment technology and other advantages, actively layout lithium battery electrolyte additive business.
At present, the company relies on the production bases of Aotong Pharmaceutical and Fuxiang Science and Technology, and actively distributes electrolyte additives such as vinyl carbonate (VC) and fluoroethylene carbonate (FEC). Among them, in terms of capacity construction, the company has invested in the "annual output of 6000t lithium battery additive project" and "annual output of 10000 tons of VC and 2000 tons of FEC project" through subsidiaries Altong Pharmaceutical and Fuxiang Science and Technology respectively. After the completion of the project, the company is expected to form an annual production capacity of 15000 tons of VC and 3000 tons of FEC products, laying a solid capacity foundation for the company to undertake related orders.
Investment suggestion: we expect to achieve a net profit of 71 million yuan, 290 million yuan and 377 million yuan respectively from 2022 to 2024, an increase of 44.3%, 311.6% and 30.1% respectively over the same period last year.
Risk hints: core raw material price rise risk; capacity put in less than expected risk; API price reduction risk; environmental protection supervision risk; epidemic control effect is not as good as expected