Announcement: Optomax released its 2023 Annual Report and 2024 Quarterly Report. In 2023, the company's revenue was 243 million yuan, a year-on-year decrease of about 17.41%. Net profit attributable to mother was 54.0385 million yuan, a year-on-year decrease of 48.72%.
Net profit after deducting non-return to mother was 347.249 billion yuan, a year-on-year decrease of 60.89%. In the first quarter of 2024, the company's revenue was 79.7068 million yuan, up 17.36% year on year, and net profit to mother was 19.5786 million yuan, down 19.07% year on year.
Operating conditions by business segment in 2023:
(1) Medium products: Revenue of 171.99 million yuan, a year-on-year decrease of 15.46%, gross profit margin of 69.50%, and a year-on-year decrease of 4.72 pcts. Currently, the company has built two cell culture medium production bases that meet GMP requirements. Among them, the dry powder production line can achieve large-scale production of medium of 1-2000 kg in a single batch, and the liquid production line can achieve large-scale production of medium of 2000 L in a single batch.
① CHO medium business: revenue of 133.49 million yuan, a year-on-year decrease of about 11.11%. The gross profit margin was 71.55%, a year-on-year decrease of 4.23pcts. In addition to a wide range of customized medium products, Opmax has also completed the development of a variety of high-performance new supplement media for different CHO cell subtypes. Among them, OPM-AF169, OPM-AF72V2, and OPM-AF132 supplements have been used by customers for pilot scale production.
② 293 Media business: Revenue of 22.56 million yuan, a year-on-year decrease of 44.94%. The gross profit margin was 70.32%, a year-on-year decrease of 0.04pcts. The HEK-293 CD05 independently developed by the company has completed the DMF filing with the US FDA.
③ Other products: Revenue of 15.93 million yuan, a year-on-year increase of 29.78%. The gross profit margin was 51.16%, a year-on-year decrease of 16.86pcts.
(2) CDMO services for antibody drug development: operating revenue of 70.70 million yuan, a year-on-year decrease of 22.17%, gross profit margin of 33.37%, a year-on-year decrease of 7.62 pcts. The fund-raising project “Opumai CDMO Biopharmaceutical Commercial Production Platform” has been completed and has entered the trial production stage. The platform has three independent cell line construction workshops, two 2000L, two 200/500L upstream and downstream production lines, and a water injection production line. The formulation production line uses a disposable system design method, which can effectively avoid cross-contamination caused by product co-production.
At the same time, the construction of the D3 plant has been successfully completed, and the company has clinical phase 1I and commercial production capacity.
Operating conditions by region: In 2023, the company's domestic revenue was 203.98 million yuan, down 16.02% year on year, gross profit margin was 58.10%, down 1.44pcts year on year. Overseas revenue was 38.71 million yuan, down 24.67% year on year, gross profit margin was 63.62%, down 21.28 pcts year on year. Overseas business excluded the impact of a major overseas customer's purchase amount in 2022, and revenue increased significantly.
In the first quarter of 2024, the growth rate of culture medium products was strong, and overseas revenue increased more than 7 times. In the first quarter of 2024, revenue was 797.068 million yuan, up 17.36% from the same period last year. Among them, revenue from culture medium products was 71.55 million yuan, up 71.00% year on year, and CDMO service revenue was 8.0453 million yuan, down 69.15% year on year. The company's overseas revenue was 32.8051 million yuan, a significant year-on-year increase of 795.66%.
Adhering to the strategic policy of “Cell Culture and Beyond”, the company continues to increase R&D investment and expand customer cooperation. In 2023, the company invested 43.06 million yuan in R&D, accounting for 17.71% of revenue, an increase of 29.70% over the previous year. There were 63 R&D personnel, accounting for 22.11% of the total number of employees, an increase of 21.15% over the previous year. In 2023, Opmax established cooperative relationships with many well-known domestic and foreign pharmaceutical companies, biotech and research institutes, and has served more than 1,400 customers.
Profit forecast. We expect the company's 2024-2026 revenue to be 364, 530, and 723 million yuan, respectively, up 49.7%, 45.6%, and 36.3% year-on-year. The company's net profit to mother for 2024-2026 will be 102, 1.60, and 217 million yuan, respectively, up 89.1%, 56.9%, and 35.1% year-on-year. Considering that the company is a leading domestic medium enterprise, and its products are competitive, with reference to comparable companies, we believe that the medium business has the characteristics of strong customer stickiness and high brand barriers. We gave it a reasonable value range of 51.08 to 6.130 billion yuan, corresponding to a reasonable value of 44.51-53.41 yuan per share, and gave it an “superior to the market” rating.
Risk warning. Market competition increases risks, global biomedical R&D expenditure risks falling, customer product pipeline expansion falling short of expectations, risk of customer product pipeline changes falling short of expectations, and risk of overseas market expansion.