Gloriad (002821) 2018 Annual Report Commentary: Performance Meets Expectations, Future High Growth Can Be Expected

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

Number of reports The company’s production capacity has continued to expand, clinical projects have increased significantly, and domestic business has grown rapidly.

Maintain overweight rating.

Key points of investment: Performance is in line with expectations, maintaining the level of overweight.

The company achieved operating income of 18 in 2018.

3.5 billion, net profit attributable to mother4.

280,000 yuan, net of non-attributed net profit3.

69 ppm, an increase of 28 each year.

94%, 25.

49% and 24.

22%, performance is in line with 上海夜网论坛 expectations.

We maintain our EPS forecast for 2019-20202.

41/3.

23 yuan, and forecast EPS4 in 2021.

21 yuan, taking into account the rapid growth of orders to improve performance certainty, we raise the target price to 115.

68 (+7.

23) Yuan, corresponding to PE48X in 2019, and maintain overweight rating.

The number of orders increased rapidly, and the proportion of domestic business increased.

The company reports an increase in orders in the preliminary clinical phase.

90%, clinical phase III projects reached 24.

Revenue from commercial orders accounted for 57%, which increased by 3 pct per year.

Increasing clinical orders form the basis for subsequent commercialization efforts.

Rapid development of domestic business.

During the reporting year, domestic business grew by 50 per year.

57%, accounting for 9.

25%, an increase of 1.

37 points.

With the rise of domestic innovation, the MAH system continues to advance, and it is expected that domestic business will still maintain rapid growth.

Capacity technology continues to increase, aiming to build an integrated service platform.

The reporting companies continued to build capacity and expand laboratory R & D and large-scale production capabilities.

While maintaining the advantages of continuous reactions and biological enzyme catalysis technology, we continue to invest in new solutions such as photochemistry and electrochemical applications.

Through the cooperation with Zhaoyan New Drug and Covance, it entered the CRO business, and cooperated with Shanghai Jiaotong University and other companies to gradually deploy the macromolecule sector.

In the future, it is expected to open up the entire industrial chain of drug R & D and continue to build a one-stop pharmaceutical R & D outsourcing service platform.

catalyst.

The order expansion exceeded expectations, and the downstream customer’s drug sales exceeded expectations.

risk warning.

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