WuXi PharmaTech (603259): Strong growth in innovative drug services, aircraft carriers maintain leading positions

WuXi PharmaTech (603259): Strong growth in innovative drug services, aircraft carriers maintain leading positions
Event: On October 30, 2019, the company released the 2019 third quarter report.In the first three quarters of 2019, operating income was 92.79 trillion, an increase of 34 in ten years.06%; net profit attributable to mother 17.65 ppm, a reduction of 8 per year.46%; net profit deducted from non-attributed mothers17.140,000 yuan, an increase of 36 in ten years.88%. The non-net profit growth was strong, and the carrier of innovative drug services maintained a leading position.The company’s revenue has continued to grow rapidly, achieving a revenue growth rate of more than 30% for two consecutive quarters, and the third quarter revenue was 33. 8.4 billion (34.72% +).We expect the company’s various business segments to maintain a strong development momentum, and the trends are basically the same as in the first half of the year.Attributable net profit decreased slightly by 8.46% to 17.65 ppm was mainly due to the loss of zero change in the fair value of the investment target of the company.45 ‰, a significant decrease of 7 previously.1.4 billion.The net profit after deducting non-attribution to mothers increased by 36 each year.88%, of which the net profit of non-attributed mothers in the third quarter reached 7.2.1 billion (69.63% +), non-profit growth performance in the quarter was outstanding.Non-IFRS attributable to parent net profit increased by 38.0% to 18.42 trillion, of which 50 in the third quarter.2% to 6.6.4 billion, outstanding performance.In 2019, the company continued to implement the “integrated, end-to-end” R & D platform synergy strategy. In the first three quarters, the company added more than 900 customers and more than 3,700 active customers, helping customers complete clinical trial applications for 16 new research drugs.And obtained clinical trial licenses for 20 projects.As of September 30, 2019, the company has gradually completed the clinical trial application for 71 new research drugs for domestic customers and obtained 54 clinical trial licenses; the small molecule CDMO / CMO service project has gradually increased the number of suspected new drug molecules by more than 900Of them, of which 40 are in phase III clinical trials and 17 have been approved for listing; the company’s cell and gene therapy CDMO platform provides services for 24 phase I clinical trials and 9 phase II / III clinical trials. The company’s overall gross profit margin for the first three quarters of 2019 was 39.51%, which has continued to increase since 2019. The three 天津夜网 basic expenses and income maintained the same proportion increase, of which the management and R & D expense ratio was 15.56%, sales expense ratio 3.38%, basically basically stable; financial expenses from 0 in 2018Q3.05% resumed -1 in 2019Q3.08%, it is expected that the unused raised funds will be deposited in banks to increase interest income.Net cash flow from operating activities.7.3 billion (93.31% +), the strong growth of all business segments led to the sales of goods and the provision of labor services to offset the purchase of goods, and the increase in net cash paid for labor services. Earnings Forecast and Estimate: We expect operating income for 2019-2021 to be 123.7 billion, 155.8.4 billion and 196.740,000 yuan, an increase of 28 in ten years.67%, 25.99%, 26.24%, net profit attributable to mother is 22.7.2 billion, 29.5.7 billion and 38.49 ppm, an increase of 0 in ten years.50%, 30 after adjustment.16% and 30.17%.The revenue end of the company is expected to maintain a rapid growth trend, but the net profit and profit attributable to large one-off changes in fair value in 2018 will not be able to keep pace with revenue growth. We expect that the company will basically maintain a synchronized high growth after adjustment.The company is the most innovative pharmaceutical industry chain enterprise with the strongest innovation ability. The industry is in a high prosperity. The company’s industry leader is stable and maintains a “buy” rating. Risk reminder: the risk of intensified market competition in the pharmaceutical R & D service industry; the safety and environmental protection risks in the drug production process; the technical risks in the contract execution process; the exchange rate fluctuation risk.