销售、研发费用增速较快，产能利用有望提升。公司是一家集研究、开发、生产原料药中间体、CDMO、制剂的大型综合性制药企业。2023 年销售费用6.58 亿元（+23.00%），增长是因为公司恢复国内外销售活动以及业务增长。23 年公司研发费用6.25 亿元（+17.25%），研发费用率5.45%（+0.40pct），研发费用增长较快。23 年公司产能利用率在68%-72%之间，未来会保持合理、稳定的资本开支，产能利用率将稳步提高。Description of the event
On March 8, the company released its annual report. The company's revenue in '23 was 11.474 billion yuan (+8.81%). Net profit attributable to mother was $1,055 million (+6.69%). Non-net profit of 1,026 million yuan (+22.73%) was deducted from mother.
Incident reviews
Sales and R&D expenses are growing rapidly, and capacity utilization is expected to increase. The company is a large-scale comprehensive pharmaceutical enterprise integrating research, development and production of API intermediates, CDMOs, and formulations. Sales expenses in 2023 were 658 million yuan (+23.00%). The increase was due to the company's resumption of domestic and international sales activities and business growth. In '23, the company's R&D expenses were 625 million yuan (+17.25%), the R&D cost rate was 5.45% (+0.40pct), and R&D expenses grew rapidly. The company's capacity utilization rate in '23 was between 68% and 72%. It will maintain reasonable and stable capital expenditure in the future, and the capacity utilization rate will increase steadily.
The CDMO R&D and production platform continues to be put into operation, and orders are gradually commercialized. In '23, the company's CDMO business revenue was 2,005 billion yuan (+27.10%), gross profit margin of 42.29% (+1.27pct), and 285 commercialization projects (+26%). Technology platforms such as peptides, PROTAC, and ADC have successively provided services to innovative drug customers around the world. Projects such as the new CDMO R&D building and the CDMO multi-purpose pilot plant were completed and put into operation to meet pre-clinical to clinical production. There are a total of 82 API projects (+49%); 18 of them have entered the commercialization stage, and commercialization of the API business continues to advance.
Prices of APIs are at the bottom, and new varieties are accelerating performance growth. In '23, the company's API intermediates business revenue was 7.987 billion yuan (+3.23%); gross margin was 17.56% (+0.87pct). The 23-year performance was affected by falling prices of sartans and veterinary drugs. Currently, API prices are at the bottom. In '23, the company registered 9 API varieties; 15 kinds of raw materials were submitted to domestic and foreign DMF. It is expected that 30 to 50 DMF APIs will be added in the next 3-5 years, and new varieties will increase business potential.
Formulation research and development projects will be set up at an accelerated pace, and the variety of formulations will grow rapidly. In '23, the formulation business achieved sales revenue of 1,249 billion yuan (+15.69%) and gross margin of 53.14% (+1.01pct). The company has more than 120 types of formulations. In '23, the company added 6 varieties, including amantadine hydrochloride tablets and bupropion hydrochloride sustained-release tablets. The company has accelerated the pace of research and development of formulation varieties. It is in the stage of significant growth of ANDA, setting up about 25 new projects every year. Starting in 2026, 15-20 will be marketed each year, and new formulations will continue to provide growth impetus.
Investment advice
The API business remains stable, and CDMO and systems are growing rapidly. The company's revenue for 2024-2026 is estimated to be 12.597 billion yuan/14.154 billion yuan/15.835 billion yuan, respectively, and net profit to mother will be 1,189 billion yuan/1,399 billion yuan/1,636 billion yuan respectively, corresponding to the company's closing price of 13.74 yuan on March 13, and PE of 2024-2026 will be 13.6/11.6/9.9, respectively, covering the first time, giving a “buy-B” rating.
Risk warning
Uncertain risks of CDMO growth due to geographical conflicts, performance risks due to fluctuations in API prices, risk of generic drug approvals falling short of expectations, risk of exchange damage due to exchange rate fluctuations.
