Over 200 million US dollars!

The domestic pharmaceutical outsourcing giant Boton issued an announcement on the evening of November 30th that the company received a new batch of "Purchase Orders" from a large US pharmaceutical company.
The order was a CDMO order related to a small molecule innovative drug from a customer, totaling the order size.
About 217 million US dollars, more than 50% of the company's operating income last year
.
Regarding the information of the overseas customer, Proton stated that it is inconvenient to disclose customer and product-related information according to the relevant agreement signed by the company and the customer due to the customer’s trade secrets.
At the same time, the company also revealed that the counterparty is a large American pharmaceutical company with good credit.
, Have good performance capabilities
.
The company stated that it has maintained a sustained and good cooperative relationship with the counterparty for a long time
.
The counterparty to the transaction does not have an associated relationship with the company
.
From the perspective of Proton's sales to this customer in the past three years, in 2018, 2019, and 2020, it achieved sales revenue of 37.
82 million yuan, 58.
46 million yuan, and 103 million yuan, respectively, accounting for 3.
19 of the year’s operating revenue in the same period.
%, 3.
77%, 4.
99%
.
According to the data, Proton is a customized development and production (CDMO) company for pharmaceuticals.
It mainly provides global pharmaceutical companies and new drug research and development institutions with chemical drugs, biological drugs and drugs needed for the entire life cycle from clinical early research to drug marketing.
Customized formulation R&D and production services
.
At present, the company has established three major business segments covering bulk drug CDMO, preparation CDMO, and gene cell therapy CDMO
.
In the first half of 2021, benefiting from the increase in demand for the original commercial products and the sales growth driven by the new late-stage clinical projects, the superimposed API CRO project diversion will drive the growth of the company's API CMO business.
Proton's API CMO business Realized revenue of 863 million yuan, accounting for 69% of the company's total operating revenue, a year-on-year increase of 29%
.
The company’s third quarter 2021 performance forecast announcement released at the end of November shows that the net profit attributable to shareholders of listed companies is expected to be 140.
48 million yuan to 151.
28 million yuan in the third quarter of 2021, an increase of 30%-40% over the same period of the previous year.

.
As of the close of November 30, Boten shares closed at 100.
10 yuan, an increase of 2.
58%.
Wind data shows that the stock rose by 174.
74% during the year, of which the increase was more than 200%
.
It is worth mentioning that, after the company’s announcement, Huaxi Securities, Guosheng Securities and other brokerages paid attention to Boton
.
Among them, Huaxi Securities analyzed in the report and pointed out that the company signed a small molecule CDMO order of approximately US$217 million with a multinational pharmaceutical company, and the delivery will be achieved in 2021-2022, which is expected to significantly increase the company's future performance
.
The agency also believes that in the future, as the company's capacity utilization rate increases and CRO personnel project management capabilities improve, the company's gross profit margin and net profit margin will continue to increase, and the profit-side growth rate is expected to continue to exceed the revenue-side growth rate
.
In the long run, the company’s biomedicine CMO and preparation CMO will open up a broader space for the company.
The existing chemical drug CDMO business track is good and the growth rate is fast, which is expected to promote the company to continue to maintain a compound growth rate of 30-40% in the next few years.

.
Guosheng Securities maintains the buy rating of Boten shares for the main reasons: large orders demonstrate the company’s capabilities and continue to be recognized by major customers; the signing of major contracts once again confirms our judgment on industry trends; capacity expansion provides impetus for subsequent growth; the company’s investment logic renews Combing
.
Risk warning: the risk of commercial order fluctuations; the risk of increasing the proportion of major customers and core products
.