Gloriain (002821) 2019 Interim Report Review: Revenue Maintains Rapid Growth, Increases Momentum for Clinical Projects

Gloriain (002821) 2019 Interim Report Review: Revenue Maintains Rapid Growth, Increases Momentum for Clinical Projects

Company dynamics The company released its semi-annual report for 2019.

  Matter Comments Revenue maintained steady growth, clinical business growth improved overall performance flexibility In the first half of 2019, the company achieved operating income10.

9.3 billion, an increase of 44 per year.

3%, maintaining a steady growth trend; net profit attributable to mothers 2.

2.9 billion, an annual increase of 46.

4%; net profit after deduction to mother 2.

2 billion, an annual increase of 42.


The company’s overall gross profit margin for the first half of 2019 was 44.

23%, a decrease of 1 over the same period last year.

78pct, mainly due to the decline in business gross margin during the commercialization stage.

In terms of period expenses, the company’s selling expenses and management expenses are 0.

3.8 billion and 1.

2.3 billion, an annual increase of 34.

7% and 48.

2%, mainly due to the company’s further expansion of business and acceleration of talent input, sales expense ratio and management expense ratio were 3 respectively.

43% and 18.

42%, basically stable.

  From the perspective of business segments, customized R & D and production services in the current commercialization stage are still the company’s main business, with operating income accounting for about 61% of the company’s total revenue.

4%, a year-over-year growth of over 40%.

With the further development of the company’s one-stop comprehensive service capability of “CMC + clinical research services”, the company’s clinical stage of customized R & D and production services has grown rapidly.

In the first half of 2019, the number of the company’s business projects in this segment reached 117, which increased by 56 last year and achieved revenue3.

5.4 billion, an annual increase of 74.

7%, driving the company’s overall performance growth; from the perspective of different regions, in the first half of 2019, the company’s revenue was still concentrated in foreign regions, and overseas operating income reached 10.

3.4 billion yuan, accounting for about 94 of the main business income.

6%, down by 1 every year.


Benefiting from the rapid increase in China’s new drug R & D investment, the number of domestic customers and projects of the company also keeps growing, and the company’s internal business in 2019H1 achieves zero revenue.

USD 5.9 billion, an annual growth rate of over 85%.

  Increasing R & D efforts and continuously improving the talent incentive system The company is a leading industry leader in CDMO solutions. In order to consolidate industry integration and integrate technical barriers, the company has continued to increase investment in R & D and talent in the past year, and has continued to conduct technologyInnovate and independently 南京桑拿网 develop core technologies to ensure the continuous output of technological value.

In the first half of 2019, the company’s R & D promotion reached 0.

8.9 billion yuan, accounting for about 8% of operating income.

2%, an annual increase of 43.


In terms of talents, the company introduced a total of 20 senior talents in the first half of 2019, including 14 doctors, 7 senior executives and above, and 12 returnees and foreign talents, gradually improving the company’s drug development and management level, and strengthening the company’s core competitiveness.

  In addition, in order to further promote and ensure the long-term stability of the management and core technical team, the company will launch a new phase of the employee fair incentive plan in 2019, which will give some important incentives to new scientific research personnel and managers who have joined the company to promote employees and the company to work together.growing up.

  The company gradually expands the industrial chain and gradually increases its production capacity. Depending on the company’s competitive advantages formed in small molecule CDMO, the company has continuously promoted the development of new services such as clinical research services, chemical macromolecules, DoE, etc., and gradually expanded the industrial chain., To create a “CMC + clinical research services” comprehensive service system.

Among them, Shanghai Kailaiying Biomedical Co., Ltd., a wholly-owned subsidiary of the company, started the construction of biological macromolecule projects, marking a key step for the company to expand from small molecule business to business in the field of biomedicine.In addition to expanding new business, in order to further meet the growing demand for customer orders, the company maintained steady progress in capacity building.

As of the first half of 2019, the first phase of the green pharmaceutical key technology industrialization project undertaken by Jilin Kailaiying Pharmaceutical Co., Ltd., a wholly-owned subsidiary, has officially started production. This project further enhances the company’s status as an existing customer and new Penan drugs.Commercial production and service capabilities lay an alternative foundation for further undertaking large-scale commercialization projects.

In addition, the company also recently released a new fixed increase plan. The fixed increase is expected to raise no more than US $ 2.3 billion. It will be used for the expansion of Kailaiying’s life sciences, the construction of biomacromolecular R & D and production platforms, and the innovative drug CDMO. The expansion of production bases, supplemental liquidity, etc., will replace the company’s existing main business derivation and expansion. It will promote the improvement of CDMO business of biopharmaceuticals and CDMO business of pharmaceutical preparations. At the same time, it will expand the production capacity of intermediates and further enrich the company’s product structure.Provide momentum for continued growth.

  Risks remind the risks of changes in the industry’s regulatory policies; the risk of increased competition in the pharmaceutical R & D service industry; the risk of major innovative drugs being delisted or recalled on a large scale; the risk of international trade friction; investment risks; investment recommendations;19 to 20 years EPS to 2.

45, 3.

19 yuan, 95 closing price on August 02.

Calculated at 75 yuan, the dynamic PE is 39.

1x and 30.

0 times.

We believe that the company is committed to its gradually perfecting comprehensive R & D and production platform, continuously improving its own competitive strength, and enhancing customer stickiness. Therefore, in the future, with the prosperity of the global innovative pharmaceutical industry, the company’s performance will benefit from the steady growth of customers and orders.Reflects obvious growth.

We are optimistic about the company’s future development and give the company a “cautious increase” rating.