When import substitution of pharmaceutical equipment is underway! The head enterprise may take the lead: Chutian Technology VS Dongfulong

【Pharmaceutical Network Market Analysis】Recently, Dongfulong, a leading enterprise of domestic pharmaceutical equipment, announced that its total fundraising of about 2.
468 billion yuan was used to increase the production capacity of pharmaceutical equipment
.
For this fixed increase, Dongfulong said that after the landing of the fixed increase project, the company will seize the opportunity of import substitution, continuously increase market share in key areas, and improve the layout
of the entire industrial chain.
From the current development prospects of the domestic pharmaceutical equipment industry, with the accelerated rise of China's biological pharmaceutical industry and the continuous improvement of the strength of domestic pharmaceutical equipment enterprises, institutions are generally optimistic about the opportunities
of import substitution of high-end pharmaceutical equipment, especially the biopharmaceutical equipment industry.
In this context, the industry believes that enterprises represented by the head are expected to gradually break through the "stuck neck" link through continuous research and development, accelerate import substitution, and seize greater development opportunities
.
Therefore, Dongfulong's fixed increase in production is also actively striving for market space performance
.
At present, China's pharmaceutical equipment head enterprises mainly include Chutian Technology and Canaan Technology, these two enterprises in the domestic market competitiveness is also relatively strong, this article to briefly sort out the information, a look at the development of
the two enterprises.
1.
Company profile Source: Aiqicha, company annual report, pharmaceutical network collation and mapping Second, revenue From the revenue of the two companies in the past four years, before 2020, the revenue scale of Chutian Technology was smaller than Dongfulong, and the scale exceeded Dongfulong
from 2020.
However, the operating income of both companies has shown a trend of year-on-year growth, with Chutian Technology and Dongfulong increasing from 1.
632 billion yuan and 1.
917 billion yuan in 2018 to 5.
26 billion yuan and 4.
192 billion yuan
in 2021 respectively.
From January to September 2022, Chutian Technology achieved an operating income of 4.
495 billion yuan, and Dongfulong was no less impressive, achieving an operating income of 3.
817 billion yuan
.
Source: The company's annual report, pharmaceutical network collation and mapping In terms of net profit, the net profit of Chutian Technology and Dongfulong showed a steady growth trend, of which Chutian Technology increased rapidly from 43 million yuan in 2018 to 570 million yuan
in 2021.
Dongfulong's net profit doubled from 2020, from 463 million yuan to 828 million yuan
in 2021.
From January to September 2022, the net profits of Chutian Technology and Canaan Technology were 463 million yuan and 604 million yuan
, respectively.
Source: The company's annual report, pharmaceutical network collated and mapped In addition, from the perspective of the net profit margin of the two companies, Chutian Technology has declined to a certain extent since 2019 compared with 2018, and the net profit margin has fallen from 2.
53% to 2.
47% respectively, but in 2021, the net profit margin level of Chutian Technology recovered to 10.
88%.

From 2018 to 2021, the net profit margin of Dongfulong showed an overall upward trend, rising from 4.
55% to 21.
14%.

As of January to September 2022, Chutian Technology and Dongfulong achieved net profit margins of 10.
5% and 16.
69%.

Source: The company's annual report, pharmaceutical network collation and mapping Third, the proportion of business revenue According to the data of the 2021 annual reports of the two companies, the proportion of product revenue from the field of bioengineering of Chutian Technology and Dongfulong has increased significantly, with a year-on-year increase of 84.
30% and 305.
15%
respectively.
It can be seen that the two companies have made gratifying
gains in the field of biopharmaceuticals.
According to the data of Dongfulong's 2021 annual report, 32.
95% of the company's revenue in 2021 came from injection single machines and systems, 21.
63% from bioengineering single machines and systems, 13.
28% from purification equipment and engineering, 11.
91% from medical equipment and consumables, and the remaining 21% from other products
。 Source: The company's annual report, pharmaceutical network collation and mapping From the perspective of the composition of Chutian Technology's operating income in 2021, 30.
54% of it comes from testing and packaging solutions and stand-alone machines, 24.
21% from sterile preparation solutions and stand-alone machines, 11.
68% from pharmaceutical water equipment and engineering system integration, 4.
65% from bioengineering solutions and stand-alone machines, and other products account for 19%.

Source: The company's annual report, pharmaceutical network collation and mapping Fourth, scientific research Chutian Technology has continued to increase its R&D investment in recent years and has maintained a high proportion of growth
.
According to the 2021 annual report, the company's biological front-end product layout has gradually improved, and during the reporting period, it launched several bottled lines, strip wrapping lines, disposable reactors and related consumables, fillers and other products
.
In 2021, the number of R&D personnel in Chutianke reached 1,595, a year-on-year increase of 42.
28% compared with 1,121 in 2020, but the number of R&D personnel decreased by 1.
34%.

In the past three years, the company's R&D investment has increased year by year, from 233 million yuan in 2019 to 488 million yuan in 2021, and the proportion of R&D investment to operating income has also continued to increase, from 7.
43% in 2019 to 9.
28%
in 2021.
Dongfulong also attaches great importance to research and development, constantly develops new products and improves existing products, and enhances product competitiveness
.
According to the 2021 annual report, the number of R&D personnel in Dongfulong was 677, an increase of 70.
96% compared with 396 in 2020, and the proportion of R&D personnel increased from 14.
88% in 2020 to 18.
44%
in 2021.
In the past three years, the company's R&D investment and the proportion of R&D investment to operating income have been increasing
.
In 2021, the company's R&D investment reached 285 million yuan, and R&D investment accounted for 6.
79%
of operating income.
Source: The company's annual report, pharmaceutical network collation and mapping V.
Conclusion Overall, Chutian Technology and Dongfulong are domestic pharmaceutical equipment enterprises with a large business scale, rich business layout, higher scientific research capabilities of the head enterprises, in recent years, the two enterprises are also in the fierce competition in the domestic market to catch up with themselves, constantly breakthrough, and strive to enhance the competitiveness of enterprises in the international market, the future of the two enterprises will paint what kind of development landscape, worthy of continuous attention
.
Disclaimer: Under no circumstances does the information or opinions expressed herein constitute investment advice
to anyone.