Kailaiying (002821) 2019 First Quarterly Report Review: Leading Technology Scale Leads Steady and Rapid Growth of Main Business

Kailaiying (002821) 2019 First Quarterly Report Review: Leading Technology Scale Leads Steady and Rapid Growth of Main Business

Introduction to this report: Performance is in line with expectations.

The reported company’s order execution was good, with technical and capacity advantages, and its main business recorded rapid growth.

Maintain overweight rating.

Investment Highlights: Maintain “Overweight” rating.

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The company released the 2019 first quarter report and achieved operating income4.

76 billion yuan, net profit attributable to mother 0.

9.2 billion, deducting non-net profit of 0.

8 billion, an increase of 31 in ten years.

03%, 45.

00% and 51.

87厦门夜网%, performance was in line with expectations.

At the same time, it is announced that the net profit for the first half of 2019 is expected to exceed the increase by more than 50%, and the net profit attributable to the mother will increase by 35% -55%.

We maintain our EPS forecast for 2019-2021.

41/3.

23/4.

21 yuan, maintaining a target price of 115.

68 yuan, corresponding to 2019 PE48X, maintaining the “overweight” level.

During the commercialization phase, the business maintained rapid growth.

It is expected that the business growth of the company in the commercialization stage will slightly exceed the growth rate in the clinical stage and technology development services business.

The number of orders in hand is expected to maintain a certain growth.

It is expected that due to the impact of rising raw material 佛山桑拿网 prices to some extent, the gross profit margin for sales will be slightly reduced to 44.

24%, but the scale effect pushed the net profit margin of sales to 19.

32%.

The company’s advance payment increased by 42.

52%, which is mainly used for prepayment of materials required for commercialization projects.

Funds received in advance increased by 81.

37% was due to an increase in advances from customers, and the business climate was relatively high.

As a result of accelerating talent appointments and new business deployments, management expenses have increased rapidly54.

64%.

The impact of exchange rate changes on financial expenses has been significantly reduced by 34.23 million in advance.

Leading technology scale advantage, continuous business development.

The company’s advanced global leading core technology has steadily improved its ability to obtain orders, and the project reserve structure in the clinical and commercial phases has been further optimized.

Consolidate the small-molecule business, and further develop large-molecule businesses such as polycarbonate, polyester, and oligonucleotides, and continue to accelerate the development and deployment of new businesses such as clinical CRO.

Catalysts: The progress of orders exceeded expectations and the rapid development of large molecule business.

risk warning.

The industry’s R & D investment was less than expected, and the commercial order market sales were less than expected.