Deep ploughing characteristic API industry, broad space for development. The company is mainly engaged in the research, development, production and sales of pharmaceutical intermediates, APIs and health products raw materials. From the perspective of industry development, China's API industry has a broad space for development. On the one hand, the state has been encouraging and supporting the chemical API, pharmaceutical intermediates and health products industry, and has continuously issued relevant industrial policies. On the other hand, the characteristic API with high added value is accelerating the transfer to the industry of our country, with the improvement of medical accessibility, the increase of national income, the growth of population, and the expiration of patent protection in developed countries. As an emerging market, China will have good opportunities for development. In this context, China's API industry has ushered in a stage of rapid development and broad prospects in the future.
Lipoic acid is an important global supplier with a wide range of downstream recognition. The company's main products include lipoic acid series, phosphatidylcholine series, carnosine series and so on. Among them, lipoic acid series products currently account for a relatively large proportion of income, is the company's main source of income. At present, the company has become one of the enterprises with the largest production scale and the most complete variety of lipoic acid in the world, and the downstream cooperation is well-known and recognized, and the product price transmission capacity is strong. In addition, the company continues to optimize the synthesis process, and the newly developed biological method of R-lipoic acid synthesis has achieved production, which will help upgrade the product structure of lipoic acid and promote the profit level and sales volume of lipoic acid series.
The R & D end is oriented to the layout of characteristic products and the production capacity is constantly released. The company has a complete and professional R & D platform and perfect R & D system, and through continuous R & D investment to drive product structure upgrading. At present, on the basis of the existing lipoic acid series, carnosine series and phosphatidylcholine series, the company focuses on the development of characteristic APIs, including the APM projects of Aricoxib and Apatinib in cooperation with Hengrui Pharmaceuticals, and the self-developed lipoic acid preparation project. The company continues to enrich the structure of the raw material drug production line, and further optimize the process and expand the application of some core products. With the release of the production capacity of the company's 720-ton pharmaceutical intermediates and API expansion project, the long-term development is worth looking forward to.
We predict that the company's earnings per share from 2022 to 2024 will be 1.81,2.09,2.44 yuan respectively. According to the comparable company valuation, we believe that the current reasonable valuation level of the company is 32 times the price-to-earnings ratio of 2022, corresponding to the target price of 57.92 yuan, with a buy rating for the first time.
Risk hint
The progress of capacity expansion and digestion is not as expected, the cost of upstream raw materials is higher, the CMO/CDMO business is not as expected, the risk of exchange rate fluctuations, etc.