First, business and industry status:
1. Business Situation:
Domestic solid preparation granulation equipment leading enterprises, the product system is complete granulation link is the core link of solid preparation production, Canaan is one of the few suppliers in China that can provide three kinds of granulation process equipment.
| The business name | Operating income (RMB) | Percentage of income | Profit ratio | Gross margin |
| Solid preparation equipment series | 191 million | 44.18% | 60.33% | 44.53% |
| Intelligent warehousing and logistics series | 134 million | 31.13% | 14.55% | 15.25% |
| Fluid process equipment series | 65.8386 million | 15.24% | 17.66% | 37.78% |
| Other businesses | 40.802 million | 9.45% | 7.46% | 25.76% |
Source: 2021 Mid-Year Report
In addition, the subsidiary Bisun Pharmaceutical is also working hard to lay out the CRO business. Specific services include chemical solid preparation consistency evaluation service, improved innovative drug technology development service and Chinese medicine solid preparation technology improvement and quality standard improvement service. At present, the company has initially formed a relatively complete set of pharmaceutical research and development and testing system.
2. Industry situation:
1) The domestic pharmaceutical equipment market competition is sufficient, and the industrial concentration is low. --April 2021 roadshow
2) The difference between the company and Dongfulong, Chutian Technology and Xinhua Medical in terms of product structure and customers?
Different from the product segments of peer companies: Dongfulong is mainly injection and lyophilization system pharmaceutical equipment, Chutian Technology is mainly water agent pharmaceutical equipment Xinhua Medical is mainly medical equipment and part of pharmaceutical equipment; Canaan Technology is mainly solid preparation pharmaceutical equipment, in recent years, it has added powder process equipment, Traditional Chinese medicine extraction equipment, biological preparation pharmaceutical water equipment and dispensing system, intelligent warehousing and logistics system and pharmaceutical research and development services, etc., serving customers including biological drugs, chemical drugs, traditional Chinese medicines, food, Health care products and express logistics and other industries customers. Our business scope has initially formed a full product service research and development chain integrating drug information consulting services, pharmaceutical research, pharmaceutical technology and equipment products, clean engineering supporting and clinical trials. ——Surveyed in May 2021
Second, the growth analysis:
1. Business Situation:
Compound growth rate of revenue in 14-20 years was 32.6%: 184 million in 2014 and 1.007 billion in 20 years;
Q1-Q3 revenue in 2121 was 752 million, an increase of 24.5% year-on-year. At present, the high growth rate of revenue is still online.
2. Net profit:
The compound growth rate of net profit in 14-20 years is 9.9%, which is significantly lower than the growth rate of revenue;
17, 18 years of net profit showed negative growth;
From Q3 of 19 to 21, the growth rate of net profit recovered, with an average growth rate of 30% in the past three years.
III. Valuation:
Valuation reference: Dongfulong
Dongfulong benefited from the rapid growth of vaccines, the performance broke out, and the stock price rose by more than 10 times in 2 years.
With the launch of the new crown special drug, Canaan Technology is expected to replicate the trend of Dongfulong.
PS（TTM）：
It has remained at 8.5 times PS from May to December 21, and the highest PS has been 12.3 times in mid-August 21.
PB：
Up to 10 times PB in August 2019, 8 times PB in December 2019
In summary,
According to 8.5-10 times PS, 21 years is expected to have revenue of 1.25 billion, and a reasonable market value of 10.6-12.5 billion;
According to 8-10 times PB, the reasonable market value is 89-111 billion