Zhaoyan New Medicine (603127): The rapid growth of revenue and non-net profit has changed

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Zhaoyan New Medicine (603127): The rapid growth of revenue and non-net profit has changed

The core point of view is that the revenue is growing rapidly, and the net profit after deduction is slightly fluctuating.

The company released the first quarter report for 2019, the number of reports, realized revenue of 74.42 million yuan, 44 per year.

13%, net profit 1204 million, 37 for the year.

27%, both maintained a rapid growth momentum.

We noticed that the net profit after deduction is ten years -18.

13%, an improvement, the preliminary lies in: 1) the company in 2018 for the new capacity of the safety assessment business personnel reserve, this part of the labor costs to a certain extent; 2) the company’s early clinical and pharmacovigilance business in the early promotion stageIn the short term, breakeven has not yet been achieved.

More than 2 project factors, the company’s net profit growth is good.

Anping’s business is stable, and the first quarter has little impact on the annual results.

From the historical situation, the company’s customers focus on the end or the beginning of the year, the settlement time is concentrated in the second half of the year, the first quarter accounted for a high proportion of net profit.

From the quarterly data for 18 years, net profit accounted for only 8% in the first quarter and nearly 80% in the second half.

At the same time, the safety assessment business is in good condition: orders on hand have continued to increase steadily, new production capacity has been put in an orderly 北京桑拿洗浴保健 manner, personnel have also made advance reserves, and are expected to enter a rapid volume phase.

Taken together, we believe that the company’s security assessment business will maintain a steady growth momentum, with relatively low first-quarter results, and thus good performance expectations.

Based on the GLP business, build a comprehensive pre-clinical CRO.

The company’s strategic plan is based on biopharmaceuticals. Based on the integration of GLP business, it will build a comprehensive CRO around early clinical and biopharmaceutical CRO / CMO.

Specifically, based on the existing preclinical safety assessment business (consolidating the domestic market and expanding overseas markets), it will strengthen its service capabilities such as medicinal pharmacopoeia and expand into the early clinical field; in terms of animals, the company willThe internal transplantation method strengthens improvement and quality management.

We believe that the company is expected to eventually grow into a preclinical comprehensive CRO with biomedicine as its core.

Financial Forecast and Investment Recommendations We predict that the company will realize net profit attributable to mothers in 2019-2021.



8.5 billion (Originally forecasted a net profit of 19-21 for 1 year.



7.2 billion), the corresponding EPS is 0.



78 yuan.

With reference to the comparable company’s estimates, maintain a 56x 2019 P / E ratio and a corresponding target price of 54.

32 yuan, maintaining the “overweight” level.

Risk Warning If the new business development is less than expected, it will adversely affect the company’s growth prospects.