Zhaoyan New Medicine (603127): High-speed growth in performance Anping’s leading performance is highly certain

Zhaoyan New Medicine (603127): High-speed growth in performance Anping’s leading performance is highly certain

On the evening of March 1, Zhaoyan New Drugs released its 2019 annual report, realizing operating income, net profit attributable to mothers, and net profit attributable to mothers after deductions4.

09 billion, 1.

08 billion and 90.29 million yuan, an annual increase of 35.

69%, 41.

72% and 36.

92%, realized profitable operating cash flow1.

5.3 billion yuan, achieving an EPS of 0.

9.4 billion.

The company released the 2018 dividend distribution plan, and it plans to pay a cash dividend of 3 yuan for 杭州桑拿网 every 10 shares to 4 shares.

A brief evaluation of the company’s performance is in line with expectations, and the company will continue to maintain its high-growth company’s attributable net profit growth of 41 in 2018.

72%, continued to maintain rapid growth.

The ten-year growth rate of the company’s fourth quarter revenue and profit were 25.

50% and 22.

02%.

The company’s performance is confirmed to have seasonal fluctuations, and the proportion of revenue in the first quarter of 2018 was 12 respectively.

63%, 20.

42%, 26.

57% and 40.

37%, the overall performance confirmation in the second half of the year, especially in the fourth quarter, but compared with last year, it is balanced and will continue to improve in the future.

The company’s gross profit margin in 2018 fell by ten years.

The number of 42 is mainly to cope with the increase in the number of employees in new capacity and orders and the impact of rising raw material prices. It is expected that there will be an improvement in 2019.

In terms of expenses, the company sold (6.63 million, +15.

17%), management (76.78 million, +48.

09%), R & D (23.69 million, -7.

38%), finance (-3.3 million, -94 million in the same period last year) expense ratios were 1.

62%, 18.

78%, 5.

79% and -0.

81%, a change of -0 from last year.

29, 1.

57、2.

69, 0.

50 averages, basically maintained at normal levels.

The increase in management costs is mainly due to the impact of fair incentive costs and the increase in labor costs.

The industry leader in the field of domestic safety assessment, to obtain the latest and highest quality orders in the industry, Zhaoyan New Medicine has accumulated experience and reputation in the field of drug safety assessment, and has expanded the scale of the leading domestic sector.

Most of the domestic safety assessment services for highly innovative drugs and treatments will go to Zhaoyan New Medicine.

For example, the company has undertaken nearly 80% of the non-clinical safety evaluation business of cell therapy in China in 2018, and the test business of ADC, double antibodies, and innovative antibodies has also gradually increased.

At present, the company is increasing the promotion of newer therapeutic fields such as stem cells, gene therapy, BNCT, UCAR, etc., which has ensured the company’s domestic leadership in the safety assessment business. The innovative pharmaceutical industry continues to be booming, and the leading advantages of Anping are obvious.

At present, the research and development of innovative drugs in China continues to be hot. As a necessary step in the development of new drugs, the safety evaluation business is at the forefront of drug research and development, and the ratio is high.

After years of accumulation, Zhaoyan New Medicine has a high reputation in the domestic safety assessment industry. Such qualifications are comprehensive and will give priority to enjoying industry dividends.

At the same time, Zhao Yan is gradually launching overseas safety assessment business, and is actively cooperating with other companies as a leader in segmentation, aiming to continue to maintain rapid growth.

With rich business development points, it is expected to cultivate new performance growth points in the future. In addition to the safety evaluation and preclinical trial business in the main camps, the company will continue to expand the business of experimental animals, clinical CRO, non-drug evaluation, and pharmacovigilance.

The company’s clinical CRO and pharmacovigilance business have completed early preparations.

Zhaoyan’s clinical CRO business strategy focuses on early clinical trial services.

Currently in Taicang and Tonghua standardized clinical trial base construction, is expected to be put into use in 2019, and plans to sign two more.

The company has started to obtain orders for BE trials and bioanalysis, and it is expected to provide a new source of profit for Zhaoyan New Drug.

For pharmacovigilance, Zhao Yanming has independently developed iPVMAP, a pharmacovigilance management platform, which can realize one-stop management, and has established cooperative relationships with merged companies.

In terms of experimental animals, the company has established a wholly-owned subsidiary, Wuzhou Zhao Derivatives, in Wuzhou, Guangxi to conduct breeding management of experimental animals. Under the guarantee of its own animal use, it will gradually gain income through breeding and selling.

In addition, the company established Wuzhou Zhaoyan New Drug in Wuzhou, and subsequently carried out the construction of a preclinical research platform.

Earnings forecast and investment rating We estimate that the company’s net profit attributable to its parent for 2019-2021 will be 1.

55, 2.

17 and 3.

20,000 yuan, the previous growth rate was 42.

7%, 40.

1% and 39.

5%, corresponding to EPS per share of 1.

34, 1.

88 and 2.

63 yuan / share, maintaining the “overweight” rating.

Risks indicate that the number of orders has grown less than expected; the expansion of production capacity has fallen short of expectations; the clinical business, pharmacovigilance business and overseas business have expanded less than expected.