On October 27, Haoyuan Pharmaceutical, a listed company, released the third quarter report of 2021, achieving revenue of 696 million yuan, an increase of 68.62% year-on-year; realizing a net profit attributable to the mother of 144 million yuan, an increase of 103.78% year-on-year; and achieving a net profit attributable to the mother of 140 million yuan after deducting non-deductions, an increase of 115.67% year-on-year.
Compared with the obvious decline in profitability in the single quarter of Q2, all key indicators in the single quarter of Q3 have recovered very strong growth momentum. From the performance trend point of view, Haoyuan Pharmaceutical will achieve a net profit of 200 million yuan for most sellers this year, and the problem will not be too big (in the past, Q4 profits accounted for a relatively large proportion, accounting for about 42-45% of the year).
<h1 class="pgc-h-arrow-right" data-track="6" >, benchmark medicine stone, the next long cattle selling water people company? </h1>
Haoyuan Pharmaceutical, spanning the two golden tracks of scientific research services and CDMO, the industry's super high prosperity superimposes the expansion and empowerment effect brought about by the COMPANY's IPO fundraising, and the future performance flexibility is sufficient.
When it comes to the molecular block company of synthetic drugs, one of the listed companies that cannot be circumvented in A shares is Yaoshi Technology, which is also one of the most suitable benchmarking objects for Haoyuan. After Yaoshi Technology landed on the capital market, the net profit increased from 0.68 billion in 2017 to 184 million in 2020 (386 million in 2021H1), with a compound annual growth rate of more than 39%, while the company's stock price fell back to about 30 yuan after the listing of the board, and in less than 4 years, the stock price rose more than 6 times.
As a "small brother in the industry company", Haoyuan also showed super historical performance, with revenue increasing from 0.59 billion yuan in 2013 to 635 million yuan in 2020, with an annual compound growth rate of about 40.55%; net profit attributable to the mother increased from 0.02 billion yuan in 2013 to 128 million yuan in 2020, with an annual compound growth rate of about 77.39%.
Whether it is comparing the CXO track of Yaoshi Technology, or comparing the scientific research service providers Aladdin and Titan Technology, Haoyuan Pharmaceutical's performance growth rate in the past three years is impeccable, showing a high degree of growth elasticity.
Haoyuan, will it become the next medicine stone to replicate the performance of Big Brother's long bull? Quite possibly.
<h1 class="pgc-h-arrow-right" data-track="87" > quietly bought in the third quarter of the second and greeners, becoming the largest circulating shareholder</h1>
Based on Haoyuan's excellent performance, the company has also attracted a large number of market funds to vote, in the latest release of the list of the top ten circulating shareholders in the three quarterly reports, there are a number of funds to make new entries and increase positions in the company, of which the most attractive market attention is the Ceibas Medical and Health Hybrid managed by Gülen, which bought nearly 1.058 million shares in the third quarter, accounting for 1.42% of the company's total share capital, becoming the largest circulating shareholder.
If you look at the trend of Haoyuan Pharmaceutical in the third quarter alone, it can be said that the stock price has taken a roller coaster twice, and if Gülen's Ceibble mix has not cleared the company's stock until now, the current cost price is likely to be in a flat or slight loss and small profit.
In Gülen's personal style, I believe that this wave of buying for Haoyuan Pharmaceutical is only a small action of the test position, from her past investment cases, she is well versed in tracking the marginal changes in CXO's performance, optimistic that a company will firmly increase its position, enjoy the CXO industry boom & leading performance growth of Davis double-click value gains.
Here are two typical cases:
Tigermed-Gülen's CEIBS Medical Health Hybrid appeared on the company's top ten circulating shareholders in 2020Q2, accounting for 1% of the total share capital, and significantly increased its positions of 6.08 million shares and 13.6941 million shares in 2021Q1 and 2021Q3 respectively, and the shareholding ratio rose all the way to 3.41%.
Jiuzhou Pharmaceutical - Gülen's Ceibble Medical Health Hybrid bought 7.61 million shares for the first time in 2020Q3, with a shareholding ratio of 0.95%, and gradually increased its position to 19.6674 million shares by the end of January 2021, and then participated in the private placement of Jiuzhou Pharmaceutical in February, receiving 9.6048 million shares, and before the third quarter report of this year, the number of shares held was 27.4325 million shares, accounting for 3.3% of the total share capital.
In the above two cases, the mixed operation style of Sino-European Medical and Health has also made it a good return on investment.
<h1 class="pgc-h-arrow-right" data-track="88" > three- and two-wheel drive to ensure performance, and acquired the jinjin raw goods line</h1>
So, where does Haoyuan Pharmaceutical's confidence and logic to maintain rapid growth in performance come from?
1, the growth space of domestic chemical reagents: small, so the elasticity is large
According to the agency's estimates, the global molecular block and tool compound market size in 2019 is about 54.6 billion US dollars, with an average annual growth rate of 4-5%.
Even so, most domestic manufacturers have a small scale, a single product type, technology to be improved and other development status, a single manufacturer's global market share of less than 1%, the growth space is very broad.
From the perspective of the industry characteristics of chemical reagents, downstream customers are more sensitive to reagent brands, product variety and frontiers, and Sigma-Aldrich, the global leader in molecular blocks and tool compounds, is a strategy of rapidly launching products with first-mover advantages and close to academic literature to occupy the market throne.
Among the first echelon companies of domestic molecular blocks and tool compounds, Yaoshi Technology has achieved certain advantages in the field of tool compounds with its deep accumulation in the field of molecular blocks, and the number of products is far ahead of other competitors; while Haoyuan Pharmaceutical has achieved certain advantages in the field of tool compounds with greater technical difficulty.
It is worth noting that the development of Haoyuan Pharmaceutical molecular blocks and tool compounds adopts two business models: self-research and outsourced redevelopment. In 2020, the revenue of self-produced molecular blocks accounted for 30% of the total sales of molecular blocks, and the revenue of purchased and reproduced molecular blocks accounted for 70%. From 2018 to 2020, the company's molecular blocks and tool compounds business grew rapidly, with a three-year compound growth rate of 52%. In 2020, the number of molecular block and tool compound products reached 42,000, an increase of 13% year-on-year, and will continue to promote the rapid development of the business in the future.
2, CDMO business, foreseeable rapid growth
As of 2021H1, the number of approved listing projects, new drug listing declaration stage, Phase III clinical projects, Phase II clinical projects, and Phase I clinical/preclinical projects is 5, 2, 5, 9 and 106 respectively, and the funnel effect of CDMO projects is obvious.
Among them, it is worth noting that Haoyuan Pharmaceutical is the upstream supplier of Rongchang Biological RC48, RC48 has ushered in a major milestone of domestic approval and overseas rights authorization to Seattle Gene this year, and may be included in medical insurance and approved for listing overseas in the future, and the sales volume will positively drive the performance of the company's CDMO sector.
In the company's prospectus, it is mentioned that due to the rapid growth of business scale, the production capacity of the company's laboratory has been close to saturation, and the company does not have the capacity of large-scale production, resulting in the API and intermediate business mainly through outsourcing procurement and outsourcing processing, and the total sales revenue achieved through outsourcing procurement and outsourcing processing in 2018-2020 exceeds 60%.
The company strengthens its supply capacity by promoting the construction project of APIs and intermediates of Anhui Haoyuan Pharmaceutical to meet the growing demand for orders, and it is expected that the production base will be gradually put into operation in 2022.
3. Enter the raw goods line to improve the ceiling and acquire Ouchuang Gene
Haoyuan Pharmaceutical announced on October 27 that it intends to use 144 million yuan of super-raised funds to acquire 90% of the equity of Anhui Ouchuang Gene.
The company also mentioned that the acquisition of Ouchuang Gene has two strategic purposes:
First, to bring together the advantages of ULTron's technology and talents to lay the foundation for the company to enter the biological reagent, I flipped through the official website of ULTRON Gene, several of which are quite interesting, such as the company's nucleoside triphosphate modification technology (the main supplier of BGI gene sequencing raw materials), nucleotide synthesis technology and modification technology (primers with excellent synthesis performance, probes, as raw materials for PCR and sequencing technology), after the acquisition can accelerate the company's integration and development of biological reagent technology.
Second, Ouchuang Gene has a 50-acre R&D production base project land to be built, which can be used as a reserve for the company's future research and development industrialization of biological reagents.
Haoyuan Pharmaceutical's initiative to lay out biological reagents is in line with the trend of the times, under the trend of biological drugs gradually "dominating the screen" of the world's top 10 best-selling drugs, the same is to serve major pharmaceutical companies, the more varieties & services the company, the more orders received.
Conclusion: Although the current dynamic price-to-earnings ratio corresponding to 2021 is not cheap, for the "water sellers" who have such excellent growth, high valuations may be quickly digested by the growth of performance.