Gloria British (002821): Performance in line with expectations CDMO leader maintains rapid growth

The overall performance was in line with expectations.

The reported company’s order execution is good, the leading position in the extended services industry is solid, and the overweight rating is maintained.

  Maintain the “overweight” rating.

The company announced the third quarter report of 2019, and realized operating income for Q1-Q3 of 201917.

4.2 billion, net of non-attributed net profit3.

3.8 billion, an increase of 44 each year.

61%, 38.


Among them, Q3’s operating income and net profit after deducting non-attribution are 6, respectively.

49, 1.

35 ppm, an increase of 45 in ten years.

18%, 33.


At the same time, the net profit attributable to mothers in 2019 is forecasted5.


USD 10 billion, an annual increase of 25% -40%; net profit after deducting non-attribution4.


1.6 billion, an increase of 30% -40% in ten years.

The overall performance is in line with expectations. Considering the smooth execution of the company’s orders, we raised the EPS forecast for 2019-2021 to 2.

47 (+0.

07) Yuan / 3.

25 (+0.

03) Yuan / 4.

23 (+0.

04) Yuan.

Due to the increase in certainty of rapid growth in future performance, the 2020 target estimate is raised to PE45X, corresponding to a target price of 146.

25 yuan (+31.

11 yuan), maintaining the level of overweight.

Many factors affect the growth rate of single quarter profit.

The gross profit margin for 2019Q3 was 45.

20%, down by 1 every year.

46%, mainly because the cost of raw materials for some commercial projects has grown faster than revenue.

Q3 income tax expenses increased by 25.41 million yuan per year, mainly due to changes in accounting policies and increased profits.

Net income from changes in investment and fair value decreased by 19.99 million yuan.

The above factors led the company to report that the growth rate on the profit side was lower than the growth rate on the income side.

The leading advantages of the outsourcing service industry continued to be consolidated.

On the basis of the solid small-molecule drug business, the company further expands the chemical macromolecules such as polycarbonate, double-strand and oligonucleotide, and clinical CRO business.

In the future, it is expected to open up the entire industrial chain of drug R & D and continue to build a one-stop pharmaceutical R & D outsourcing service platform. Catalysts: 杭州桑拿 The progress of orders exceeded expectations and the rapid development of large molecule business.

Risk warning: The industry’s R & D investment is lower than expected, and the commercial order market sales are lower than expected.