Three listed products are being commercialized and their performance is growing rapidly:
The company's operating income in the first half of 2022 was 182 million yuan, up 687% from the same period last year, while the net loss shrank sharply to 15.72 million yuan, down 86% from the same period last year. Three listed products began to be commercialized this year. At present, Park Xinting has covered all provinces and autonomous regions except Tibet, with a production capacity of 20,000 litres and a production qualified rate of 100%. Tizhian is currently sold through two channel models: 1) in terms of collection and acquisition, the company has been successfully selected for 13 provincial alliances and contract renewal supply enterprises in Jiangsu Province and Hebei Province. 2) in terms of non-collection, through cooperation with Jimin Trust to accelerate the expansion of market share, it is expected that the performance will increase significantly in the second half of the year; for Meishiya, the company is signing strategic cooperation with Frontier Biology to accurately locate AIDS groups and segment market promotion and sales. In terms of clinical progress, the clinical trial of ADC drug TAA013 has been completed and the subjects are being followed up; the phase Ⅲ clinical trial of anti-VEGF monoclonal antibody in cooperation with Mega Ophthalmology has completed the first patient in the group; and TAC020 (innovative target) is under joint development with platinum medicine, which is progressing smoothly.
CDMO business is developing rapidly and has obvious competitive advantages:
In the first half of the year, the company's CDMO business achieved revenue of 22.66 million yuan, up 94% from the same period last year, with on-hand orders exceeding 85 million, with a total of 23 projects, with a delivery rate of 100% on schedule, and revenue is expected to exceed 100 million in 2022. There were 8 ADC projects, 10 McAb projects, chemical drugs and 5 other projects, covering different stages from preclinical to clinical stage III. Orders mainly come from ADC and McAb projects, with 50% of new orders and 50% of existing orders, showing the continuous development of CDMO. The company has obvious competitive advantages in CDMO business: 1) the company has the advantages of core coupling process and magnification technology, as well as the independent analysis ability of key quality attributes of ADC, and is in the first echelon in the field of ADC in China. 2) flexible production capacity, production line, perfect commercial layout, the company can provide customized services according to customer needs, covering small-scale, pilot-scale and commercial scale. At present, the company has established an integrated production and commercial workshop for monoclonal antibody solution and preparation, ADC solution and freeze-dried preparation, while meeting high standards of quality management system, commercial capacity and compliance to meet GMP standards.
Once again cover the buy rating, the target price is HK $5:
With the commercial sales and promotion of the three products and the rapid development of CDMO business, the performance will increase greatly. We expect that the company's income from 2022 to 2024 will be 370 million yuan, 542 million yuan and 702 million yuan respectively, and its EPS will be-0.02,0.06,0.15 yuan respectively. Based on the cash discount method and price-to-earnings ratio valuation, the target price of the company will be HK $5, corresponding to 28 times PE in 2024. There is 69.5% room to rise from the current price, given a "buy" rating.