WuXi PharmaTech (603259): The first-quarter results exceeded expectations and continued to maintain high growth

WuXi PharmaTech (603259): The first-quarter results exceeded expectations and continued to maintain high growth
Recently, the company released the first quarter report of 2019, and realized operating income / net profit attributable to mothers / net profit attributable to non-mothers27.69 ppm / 3.86 ‰ / 4.9.5 billion, an increase of 29 each year.31% / 32.97% / 87.54%.The performance exceeded expectations, and the main business continued to maintain a high growth rate. The operating analysis of the company’s various business segments has achieved rapid development, with annual revenue growth of 29.31%, of which the clinical CRO business maintained rapid growth; affected by factors such as the rapid growth of main business profits, changes in fair value, investment income and other factors, net profit attributable to mothers / net profit attributable to non-mothers increased.97% / 87.54%; after deducting factors such as fair incentive expenses, exchange rate changes, gains and losses, etc., the adjusted non-IFRS returns to the parent’s net profit increase.3%, matching revenue growth. The company’s new business, new capacity expansion increased, and key talents were motivated. The gross profit margin was slightly lower than the same period of last year; the rapid development of the company’s new business, the production capacity was gradually released, the gross profit margin has gradually improved, and it increased by 1 in the first quarter.85%.The expense side remains generally stable.Sales expenses / administrative expenses / R & D expenses / financial expenses increased by 43.58% / 47.49% / 61.89% /-8.80%, mainly due to the development of new business, equity incentives and consulting costs increased, research and development expanded, and net interest 苏州桑拿网 expenses decreased. Gains from changes in fair value during the period -1.The US $ 3.4 billion was mainly due to the fair value loss of the invested companies such as the listed companies UnityBiotechnology and Hua Medicine invested by the company; in terms of investment income, it achieved 2 in the first quarter.The investment income of 110,000 yuan is mainly due to the invested company WuXiHealthcare Ventures II L.P.Increase in holding income. Affected by the global industrial transfer and the positive drive of the rise of Chinese pharmaceutical innovation, the domestic R & D outsourcing service industry will maintain high growth for a long time.WuXi PharmaTech, as the world’s leading drug R & D service platform, provides customers with comprehensive, integrated, end-to-end R & D and production of small molecule new drugs, 杭州夜生活网 medical device testing and precision medical R & D and production services. The entire industry chain has obvious advantages and customer conversion rates.With continuous improvement, the synergy effect of each business segment continued to increase, the order scale increased steadily, and the performance maintained stable and high growth. Profit adjustment and investment recommendations We expect the company’s EPS to be 1 in 2019-2021.84/2.24/2.82 yuan, an annual increase of -5% / 22% / 26%, after excluding non-recurring profit and loss items such as investment income, the net profit growth rate of the mother is 20% / 24% / 29%.Maintain “Buy” rating. Risk prompts: lifting of the ban risk, risk of loss of core technical staff, regulatory risk, IP protection risk, overseas investment risk, exchange rate fluctuation risk, raw material price rise risk, safety production and environmental protection risk