Zhaoyan New Medicine (603127): Performance exceeds expectations, orders and production capacity boom

The performance exceeded expectations, and the company with rapid growth in orders issued a semi-annual report with operating income2.

0 billion (+48.

6%), which was + 13pp from last year, + 4pp from the previous quarter, and + 6pp from the same period of last year. The growth rate has increased significantly, mainly benefiting from increased order conversion and capacity release.

In the end, there are currently about 1 billion orders in hand, an increase of 17 from the same period last year.

6%, orders in hand are much higher than the annual revenue, which provides a guarantee for performance growth.

The value of newly signed contracts in the first half of the year increased by approximately 无锡桑拿网 21%, and continued to maintain rapid growth.

Accounts received in advance 4.

1 billion (+ 24%).

In terms of production capacity, about 11,000 new animal houses were newly put into use in the first half of the year, which greatly improved service throughput and capacity.

Another laboratory is under renovation and is expected to be put into use in 9 months.

In the first half of the year, the company’s workforce increased from 817 at the end of last year to nearly 1,000.

Recently also launched equity incentive plans.

The security assessment business is the main one, accounting for about 70% of the total. It is estimated that the growth rate is about 40%, and it is expected to maintain an increase of about 40%.

Pharmacokinetics and experimental animals also maintained rapid growth.

PV business and clinical business began to generate revenue, and the construction of two Phase I clinical centers in the first half of the year was completed.

Net profit attributable to mother RMB 40.14 million (+78.

9%), an increase of 37pp from the end of last year and an increase of 61pp from the first quarter; net profit attributable to non-attributed mothers was 28.63 million yuan (+87.

2%)), an increase of 50pp compared to the end of last year, and a sharp reduction from the first quarter to an increase.

The gross profit margin remained stable, and the gross profit margin for sales to international development was 50 in the first half.

9%, down 2 from the end of last year.

1pp, a decrease of 0 compared with the same period last year.

4pp, keep stable.

Since most of the company’s revenue is confirmed in the third and fourth quarters, it is more meaningful than the same period last year.

Sales expense ratio in the first half of the year 2.

5%, an increase of 0 from the end of last year.

8pp, an increase of 0 compared to the same period last year.

5pp, mainly caused by sales staff compensation and business development. In the first half of the year, the company organized a number of academic meetings in the United States, Canada, and Japan, and reached an acquisition intention with the preclinical CRO company BIOMERE.

Management expense rate 20.

0%, an increase of 1 from the end of last year.

2pp, a decrease of 14pp from the same period last year, mainly due to the increase in the salary of management personnel.

R & D expense ratio 8.

0%, an increase of 2 from the end of last year.

2pp.

Finance expense ratio -0.

5%, an increase of 0 compared with the same period last year.

7pp, the efficiency of fund use is improved.

Earnings forecast and investment rating The company’s EPS for 2019-2021 is expected to be 1.

03/1.45/2.

07 yuan, corresponding to 58 for PE.

0/41.

4/28.

9. Give the company a “Buy” rating.

Risk Warning: Large CROs Entering Competition

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