20220330-招银国际-泰格医药-300347.SZ-Ceaseless_globalization_efforts_4页_982kb

Tigermed (300347 CH) Company Update Summary

Core Content

Tigermed, a leading clinical research organization (CRO) in China, has demonstrated strong financial performance and strategic growth in 2021, with a focus on expanding its global footprint through multi-regional clinical trials (MRCTs). The company reported significant revenue and net income growth, driven by both domestic and international expansion efforts.

Key Financial Highlights (2021)

• Revenue: RMB5,214 million, up 63.3% YoY
• Attributable Net Income: RMB2,874 million, up 64.3% YoY
• Attributable Non-IFRS Net Income: RMB1,585 million, up 60.6% YoY
• Gross Profit Margin (GPM): Declined to 43.6% from 47.4% in 2020 due to RMB appreciation, low-margin SMO growth, and pass-through fees from MRCTs
• New Orders: RMB9,645 million, up 74.2% YoY
• Total Backlogs (Dec 2021): RMB11,405 million, up 57.1% YoY

Globalization Progress

• Overseas Revenue: Increased by 91.9% YoY in 2021, despite a strong RMB
• MRCTs Pipeline: Rose from 20 as of Dec 2020 to 50 as of Dec 2021, with a notable increase in non-COVID projects
• Client Recognition: The company's MRCT services are gaining traction, indicating growing reliance on its global network by domestic drug companies for overseas development

Long-Term Growth Prospects

• Total Ongoing Clinical Projects (Dec 2021): 567, up 46% YoY
• Ph1&2 Projects: Experienced faster growth than late-stage projects, forming a robust base for future late-stage expansion
• Domestic R&D Investment: Projects conducted only in China grew faster than overseas, reflecting increased R&D activity by Chinese drug firms

Investment Recommendation

• Rating: Maintain BUY
• Target Price (RMB): 183.56 (previously 212.59)
• Current Price (RMB): 102.64
• Upside Potential: +78.84% from current price to target price

Financial Forecasts (FY22E-FY24E)

Valuation Overview

• DCF Valuation (9-year model): Based on a WACC of 9.84% and a terminal growth rate of 3.0%
• Equity Value (RMB mn): 2,951 (as of FY22E)
• Price per Share (RMB): 183.56

Shareholding and Stock Data

Shareholding Structure

Share Performance

Key Ratios

Auditor & Related Reports

• Auditor: BDO
• Related Reports:
  1. Impressive backlog growth momentum and enhancing global competency – 25 Oct 2021
  2. Strong backlog growth driven by solid demand – 25 Oct 2021
  3. Strong momentum continued – 30 Apr 2021

Risk & Disclaimer

• The report contains forward-looking statements and estimates that are subject to change based on market conditions
• CMBIGM does not provide individually tailored investment advice and recommends consulting a professional financial advisor
• There may be conflicts of interest due to CMBIGM's involvement in securities transactions and market-making activities

Analyst Certification

• The research analyst certifies that the views expressed in the report accurately reflect their personal views
• The analyst has not traded in the stock covered in the report within 30 days prior to the report's issue date
• The analyst does not have any financial interests in the companies discussed

CMB International Global Markets Limited

• Address: 45/F, Champion Tower, 3 Garden Road, Hong Kong
• Tel: (852) 3900 0888
• Fax: (852) 3900 0800
• Parent Company: CMB International Capital Corporation Limited (a subsidiary of China Merchants Bank)

Important Disclosures

• The report is intended solely for the use of intended recipients
• No part of the report may be reproduced, reprinted, sold, or published without prior written consent
• CMBIGM is not a registered broker-dealer in the United States or Singapore, and the report is subject to local regulations and restrictions