Based on small molecular drug design, one-stop service drug R & D and production companies are based on the key links of new drug research and development. gradually build a comprehensive technical service platform covering drug discovery, process research and development, as well as a commercial production platform for the production of new drug key intermediates and independent products, with the ability to provide customers with one-stop comprehensive services from preclinical research and development to commercial production of new drugs. The company specializes in small molecular drug design, and established a deep cooperative relationship with overseas high-quality biotech companies to help customers develop a variety of FIC drugs, and enjoy high bargaining power, business characteristics. At the same time, the company's main commercial varieties have a good competition pattern, and are in the stage of patent expiration, customer demand is expected to continue to increase, as the company extends to a higher value-added API business, it is expected to contribute new increments.
We are optimistic about the long-term development of the company. It is estimated that the return net profit of the company from 2022 to 2024 will be RMB 0.63pm 1.19max RMB 186m, EPS RMB 0.81 pm 1.55max 2.42 yuan, the current share price corresponding to PE 59.7max 314max 20.0 times, reasonable valuation, first coverage, and a "buy" rating.
Continuously consolidate business capacity, one-stop service innovative drug early R & D company takes the drug discovery business with high technical barriers and low homogenization competition as the starting point, deeply participates in customers' new drug research and development, and customers are more sticky. and to extend to the downstream of drug development, expand pharmaceutical research business, meet customers' needs of integrated drug R & D outsourcing services, and deeply bind customers' projects. In close cooperation with biotech at home and abroad, the company has developed 21 drugs, of which 3 have been listed and 16 are FIC drugs. At the same time, to meet the needs of customers and expand process research and development services, the number of preclinical, clinical and commercial projects served by the company in 2021 will be 75-22-1 respectively, and the project echelon has been formed.
The competition pattern of the core varieties of commercial production is good, and the integrated layout contributes to the new incremental company merging Kaiyuan Hongbo in 2014, extending the layout of commercial production business downstream. The patent for this compound will expire at the end of 2019, and the patents for crystal form or preparation in the United States, Europe, Japan and other countries will expire one after another. With the expiration of the patent, the demand for upstream APIs and intermediates will further increase. For Tegrillo series intermediates, the company has nearly 40% of the domestic market share, a good competition pattern, and further expand the high value-added API business, which is expected to contribute new increments.
Risk tips: declining market demand for drug R & D, loss of core members, lower-than-expected production capacity and so on.