Gloria British (002821) 2018 Annual Report Comments: Main Business Maintains Steady Growth and Expands Rapidly in Multiple Areas
Event: Recently, Gloria United announced its 2018 annual report, reporting that the company has achieved revenue18.
35 billion, an annual growth of 28.
94%; net profit attributable to mothers, net profit attributable to mothers4.
29 billion, 3.
6.9 billion, an increase of 25 each year.
22%; realized earnings per share of 1.
At the same time, the company announced its annual profit distribution plan: it intends to distribute RMB exchange rate for every 10 shares of cash dividends to all shareholders.
00 yuan (including tax).
Key points of investment: The main business maintained rapid growth, the 杭州桑拿网 domestic business development reported strong growth, and the core commercialization stage achieved revenue10.
44 billion, clinical stage business income5.
8.6 billion, revenue from technology development services2.
2 billion, accounting for 57%, 32% and 11% of the company’s revenue, respectively.
Among them, there were 27 projects in the commercialization stage in 18 years, and the average project income amount increased significantly by about 30% compared with the same period last year.
The number of clinical stage projects in 18 years was 166, of which the number of clinical stage III projects was 24, and the number of other clinical stage projects was 142, an increase of 50% and 46% over the same period of last year. The number of clinical stage projects, especially the number of phase III clinical projects, was significant.The growth prospects bring huge room for incremental business performance in the subsequent commercialization phase.
The number of technology development services in 18 years was 271, a significant increase of 43% over the same period last year.
In 18 years, the company’s overseas and domestic business accounted for 90%.
53%, the domestic business is expected to gradually explode the domestic innovative drug industry in the future and the MAH implementation will be updated and developed.
On the whole, the company’s project pipeline has continued to expand in 18 years, and its ability to obtain orders has continued to improve. At the same time, the company’s project reserve structure at different stages has been further optimized, which is a good basis for the company’s subsequent performance growth.
The gross profit margin of the main business was reduced, and the R & D expansion intensity was not reduced. The company’s commercialization and clinical project gross profit margins were 46.
42%, down 4 from the same period last year.
22%; preliminary improvement in the gross profit margin of the main business includes 1.
Exchange rate factors;
Raw materials accounted for a relatively high proportion of current commercial projects, which affected the project’s gross profit margin to a certain extent.
The current sales expense ratio remained basically stable. Due to the rapid growth of R & D expenditure, the management expense ratio increased to 19 compared with the same period last year.
7%; financial expense ratio decreased due to foreign exchange factors compared with the same period last year.
18 years of research and development funds1.
55 billion, a significant increase of nearly 60% over the same period last year, accounting for 8% of revenue.
At present, relevant technologies have been applied to the commercial production of key intermediates and APIs of various innovative drugs such as third-line Peinan antibiotics, second-generation cancer drugs, and anticancer drugs. High-intensity research and development continue to build company technology.Competitive advantages and industry barriers.
Actively expand the business field and build a “CMC + CRO” one-stop comprehensive service capability. As a domestic small molecule drug CDMO leader, the company’s core technology advantages have expanded to cover innovative drug CMC services, MAH business, formulation research and development and production.
At the same time, the company reports actively expanding business areas in other directions: 1.
Establish a biological analysis laboratory with Shanghai Public Health Clinical Center to actively build an integrated research platform that combines clinical research and biological sample analysis; 2.
Developed strategic cooperation with Shanghai Xinjinshan Investment, and planned to build a macromolecular biopharmaceutical R & D center and production base.At present, the company’s business has expanded to include small molecule API, preparation business, China-US double newspaper, clinical CRO and other fields. At the same time, it has been involved in early investment in innovative drugs. + CRO / CDMO “model of the integrated drug service ecosystem, creating a” CMC + CRO “one-stop integrated service capability.
Profit forecast and investment suggestions: It is estimated that the company will realize net profit attributable to mothers from 2019 to 2020, respectively.
64 billion, 7.
2.9 billion, corresponding to 2 EPS.
16; Corresponding to the current sustainable PE of 38 times and 29 times respectively, continue to recommend and maintain the “Buy” rating.
Risk factors: the risk of failure of the customer’s new drug research and development, the risk of exchange rate changes, and the risk of 杭州桑拿 business expansion and integration being less than expected