Depth-Company-Zhaoyan New Medicine (603127): Steady growth in performance and sustained growth

Depth-Company-Zhaoyan New Medicine (603127): Steady growth in performance and sustained growth

Depth * Company * Zhaoyan New Medicine (603127): Stable and robust performance and long-term sustained high growth can be expected

The company’s first three quarters of 2019 report consolidated and achieved operating income3.

4.8 billion (+42.

95%), net profit attributable to mother, 7,648.

310,000 yuan (+33.

66%), deducting non-attributed net profit6.


10,000 yuan (+38.

95%), operating net cash flow of 9,725.

640,000 yuan (-20.


Q3 single-quarter operating income1.

4.8 billion (+35.

86%), net profit attributable to mother 3,634.

690,000 yuan (+4.

5%), deducting non-attributed net profit of 3,172.

RMB 790,000 (+12.


Q3 single-quarter growth was slightly lower than expected, but according to the company’s scheduled business characteristics, continued 夜来香体验网 high growth can be expected, and maintain a BUY rating.

  The main points of the support level Q3 single-quarter performance growth initially does not represent representativeness, and thus brings greater significance.

During our research of companies and industries, investors were repeatedly defined. Due to the company’s business attributes and accounting system, splitting quarterly or semi-annual performance cannot fully explain the problem, because most of the company’s project cycle is 6 months-About 12 months, the general regulations are the initial questions, and the questions are closed at the end of the year, and the company’s accounting certificate confirms that the revenue is determined after the project is completely completed.

We believe that the company’s quarterly performance will become normal due to the opening of the title and the arrangement of the conclusion. There will be distortions in the quarterly data, which will entangle whether Q3 single quarter exceeds the “market expectations” without scale, and lead to maximum performance.significance.

The CRO industry is still in a high-boom stage (and no leading indicators of the industry’s turning point can be seen in the short term), and the company’s pre-revenue revenue has grown earlier.

71% (reflecting new long-term singletons), and inventory (reflecting open abstracts) increased from earlier (90.

75%), the newly invested animal houses will be replenished in the second half of the year, and the company’s performance will continue to grow rapidly.

Expenses increased significantly, and overall financial indicators remained stable.

The company’s overall gross margin is 51.

56%, a decrease from the same period last year.

73pct, net interest rate 21.

8%, a decrease from the same period last year.

66 points, the slight decline in profitability is ultimately the increase in experimental costs such as laboratory animals and labor costs; advance receipts4.

1.6 billion, an increase of 22 over the beginning of the year.

71%, we believe that there are more than 1 billion orders in hand.

Operating cash flow for the period was 9,725.

640,000 yuan, which is consistently higher than the net profit, a decrease of 20 from the previous year.

11%, the first is the first three quarters of paid employee compensation increased by 72.

5%, spending on purchasing goods and receiving services increased by 62%.

Selling expense ratio 2.

31% (-0.57pct), the absolute amount increases by 90 per year.

44%, the management expense ratio is 18.

47% (-3.

38pct), the absolute amount increases by 36 each year.

89%, R & D expense ratio 7.

67% (-0.

23pct), the absolute amount increases by 51 each year.


  It is estimated that net profit will be realized in 2019-20201.

5.7 billion, 2.

1.7 billion, 2.

8.3 billion, maintain BUY rating.

  The main risks faced by the rating are slower than expected; the progress of investment projects is slower than expected; the profit of new investment projects is not up to expectations.