WuXi PharmaTech (603259): The revenue in the first half of the year exceeded expectations by 33.68% clinical CRO and CDMO speed up significantly

WuXi PharmaTech (603259): The revenue in the first half of the year exceeded expectations by 33.68% clinical CRO and CDMO speed up significantly
Adjusted non-IFRS net profit attributable to mothers increased by 32%, which was significantly higher than expected in the first half of 2019.9.4 billion, an increase of 33.68%, net profit attributable to mother 10.5.7 billion, down 16.91%, mainly due to the increase in fair value gains in the same period last year, net of non-net profit9.9.3 billion, an increase of 20.05%, adjusted non-IFRS net profit attributable to mothers increased by 32%, higher than market expectations.Revenue in the second quarter of 31 was 31.25 billion, an increase of 37.82%.On the whole, the company’s initial initial healthy growth has been outstanding, and all businesses are in a rapid growth stage. The clinical CRO and CDMO businesses have performed well, driving overall revenue growth. From the perspective of business spin-offs, the laboratories in China remain stable.With a growth rate of 7%, the laboratory in the United States has accelerated to 30%, and the gross profit margin has also increased from 22.9% increased to 26.9%; the best performing was the clinical CRO business, which grew by 104% per year (68% after excluding the acquisition of Pharmapacehe and RPG), and appointed Frederick H. Dr. Hausheer’s 成都桑拿网 post-Chief Medical Officer business competitiveness has significantly improved; CDMO business has grown by 42%. According to the official website data, which covers 40 phase III clinical projects and 16 commercialization projects, driving the overall revenue acceleration, the company’s first supportThe workshop for cGMP production of oligo nucleotides and polycarbonate raw materials for clinical use has been opened. During the period, the expense ratio increased by 0.55 single, operating cash flow increased by 96.The gross profit margin of 45% in the first half of the year was 38.79%, down 1.29 pct, mainly due to the company’s increased incentives for key talents.The cost rate during the period was 19.09%, an increase of 0.55 units, of which the sales expense ratio is 3.54%, an increase of 0.07 shares per share, R & D + management 南京桑拿网 expense ratio of 15.27%, an increase of 1.54 per share, mainly from the increase in fair incentive expenses, and the financial expense ratio was zero.29%, down 1.07 per share, budgeted operating cash flow of 0.60 yuan, up 96.45%, excellent cash flow. It is expected that the results for 19-21 will be 1.48 yuan / share, 1.85 yuan / share, 2.33 yuan / share is expected to be 1 in 19-21.48 yuan / share, 1.85 yuan / share, 2.33 yuan / share, corresponding to PE49 at the latest closing price.92 times, 40.07 times, 31.74 times.With reference to comparable companies, the industry estimate for 2019 is 58 times. Considering that we give the company 58 times PE in 2019, corresponding to a reasonable value of 85.84 yuan / share.Taking into account the AH premium factor, we believe that the company’s H shares have a reasonable value of 90.75 shares / share, maintain the company’s A shares and H shares buy rating. Risks remind that global R & D investment in innovative drugs is growing less than expected; leading R & D expansion ratios change; some customers’ order conversion