Medici (688202) In-Depth Report: Ongoing Preclinical Integration CRO

Medici (688202) In-Depth Report: Ongoing Preclinical Integration CRO
At present, the CRO industry is still in a rapid growth stage: According to statistics from Evaluation Pharma, the growth rate of long-term pharmaceutical R & D investment is expected to continue to maintain above 20% in the next 3 years, driving the rapid growth of demand in the CRO industry.Drug review reforms, medical insurance control fees have forced pharmaceutical companies to transform into innovative drugs, joining ICH and international standards, these factors have jointly promoted pharmaceutical companies to expand research and development investment.  At the 杭州桑拿网 same time, the primary market is active in financing. Science and technology board, Hong Kong stocks and other capital markets allow unprofitable biotechnology to be listed, which also brings more funding sources for domestic biotechnology.Some people worry that the medical insurance negotiations will reduce the profit level of innovative drugs and discourage the R & D enthusiasm of pharmaceutical companies.However, we believe that the overall plate of domestic R & D investment will still grow rapidly for three reasons: (1) the classification of generic drugs with volume procurement, innovative drugs can try to bring relatively stable revenue growth, and relatively high profit levels;(2) With the estimated value, the level of domestic application of innovative treatment methods for innovative drugs that have been marketed in recent years is still compensated, and because of the large number of domestic patients, some of the innovative drugs obtained on time and on time are the only ones sold in In the long run, the restructured pharmaceutical industry will gradually change from relying entirely on generic drugs to gradually relying on generic drugs + partly on me-too, me- better innovative drug support, and eventually develop into a small number of generic drugssupport.In this process, the proportion of R & D investment in revenue will continue to increase. After years of intensive cultivation, the company has completed the pre-clinical CRO industry chain layout through horizontal expansion and preliminary in-depth methods. It has a relatively obvious competitive advantage in the domestic CRO market: the company’s business scope includes the entire process of pre-clinical new drug research.The layout of scenic spots such as tumor immunotherapy, ADC, DEL, PROTAC, and virtual screening is a rare one-stop biomedical pre-clinical R & D service platform in China.With the perfect IP protection mechanism and the increasing demand for integrated projects, integrated service platforms have become attractive to customers.At the same time, the company has more obvious advantages in pre-clinical evaluation, especially in the field of safety assessment. The company’s safety assessment laboratory was built in accordance with the US GLP standards from the beginning. The company is the first company in China to provide a complete set of pre-clinical approval applications and comply with China.GLP and American GLP standard CRO companies. The company’s revenue growth is currently in the fast lane. With the expansion of production capacity in the future, the rapid growth growth in the medium and long term will be maintained: the company’s revenue growth will accelerate in the second half of 2019, and the company’s revenue growth will be 30 in H1, 2019Q3 and 2019Q4.3%, 45.2% and 45.0%.At the same time, according to the company’s announcement, the company’s new extension order 6 in 2019.160,000 yuan, an increase of 46 in ten years.49%.The company’s revenue growth has accelerated in the past two years. At the same time, according to the growth of orders, we expect the company to continue to maintain a high growth rate in the next two years.Considering that the company has more abundant capital after listing and the expansion of production capacity expansion plans, we believe that the rapid growth of medium and long-term companies is also expected to maintain. Investment advice: We expect the company’s revenue from 2019 to 2021 to be 4 respectively.4.9 billion (+38.1%), 6.4.1 billion (+42.7%), 8.8.7 billion (+38.6%), net profit attributable to mothers is 0.6.6 billion (+8.9%), 0.9.5 billion (+44.0%), 1.3.4 billion (+40.3%), the corresponding EPS is 1.07 yuan, 1.54 yuan, 2.16 yuan, the corresponding PE is 67.8 times, 47.1x, 33.6 times.We are optimistic about the rapid growth of the company’s CRO business in the future and give it an “Overweight-A” rating. Risk reminder: The industry is weaker than expected, the risk of major changes in the industry’s regulatory policies, competition from similar domestic companies is increasing, labor costs are constantly increasing, and exchange rate risks.

Ping An Bank (000001): Risk release reinforces performance foundation and boosts interest rate spread

Ping An Bank (000001): Risk release reinforces performance foundation and boosts interest rate spread

Event Overview Ping An Bank’s 2019 annual financial report: The company achieved operating income of 1,379 in 2019.

580,000 yuan, an increase of 18 in ten years.

2%; net profit attributable to mother is 281.

95 ppm, an increase of 13 in ten years.

6%; bad rate 1.

65% (-10bps / -3bpsQoQ), provision coverage rate of 183% (+27.

9pct YoY / -3pct QoQ); the proposed dividend is 2 for every 10 shares.

18 yuan (including tax).

  Analysis and judgment: In recent years, with the in-depth transformation of the retail business and the streamlining of business operations to reduce risks, the overall profit growth rate in 2019 has reached a new high of nearly five years. Financial statements have been more balanced in the business structure and risks have been releasedMore healthy, the subsequent performance growth will be more stable.

At the same time, the public business has a significant boost under the transformation strategy of “doing fine work for the public” in 2019, and the total loan and deposit has increased significantly, better than market expectations.

The revenue in 2019 is more solid, and the interest margin has even significantly increased. In 2019, Ping An Bank will realize a further increase in net profit returned to its mother.

6%, of which, revenue growth rate was 18.

2%, profit growth before provision is higher than revenue growth1.

3 units.

The contribution of profits mainly comes from the stability of the revenue side. Among them, the significant rise in the main interest margin has led to an increase in net interest income by 20.

4% (only 1% growth 18 years ago).

The interest rate spread in 2019 exceeded 26BP, which is mainly due to the contribution of the denial. The main points of the split are: 1) the growth of interest rate demand deposits has turned positive and significantly increased, with an increase of 12%.

5% (-18 in -6.

7%), which is mainly the contribution of the company’s demand deposit growth; 2) In 19 years, the overall active compensation costs fell due to loose liquidity in the financial market.

  In terms of credit structure, credit in 2019 is mainly invested in corporate and retail credit cards and home mortgage loans. On the basis of the existing structure, retail loans include high-yield residential mortgages, car loans and consumer loans, accounting for more than 50% of total loans.Under the background of the decline in credit and market interest rates, the industry’s overall asset-side pricing downward pressure has broken through, and it is expected that the company’s interest margin will even fall.

The risks are fully exposed, and the future will be light-loaded. The rising trend of retail loan NPL ratio is worth paying attention to. After 18 to 19 years of centralized disposal of risk assets, the company’s NPL ratio reached a high point at the end of 18, and the company’s asset quality in 2019 was obviouslyImprove, fall quarter by quarter.

From the perspective of non-performing forward-looking indicators, attention-oriented loans and loans overdue for more than 90 days also dropped significantly. Among them, the proportion of loans overdue for more than 60 days at the end of 2019 also decreased by 34BP, while the replacement ratio dropped to 1 after 90 days over 18 years.After that, over 60 days overdue at the end of 19 also fell below 1.

In terms of risk offset, the provision coverage ratio of loans overdue for more than 60 days also reached 190%, and the risk offset capability was significantly improved.

According to the current asset quality and risk offset level, the company’s high probability of credit costs will begin to enter the downward phase in the future.

From a structural point of view, the credit cost of corporate loans has declined significantly, but the credit cost of retail loans has significantly increased in 2019 due to the increase in non-performing ratio.

In the future, we need to pay attention to the upward situation of retail loan asset quality.

The retail business transition has continued to consolidate and the business balance has been improved. In the future, the gradual transformation will be oriented to digital, scene, and platform. In recent years, the contribution of retail business to overall revenue and profit has continued to increase.More than 50%, in 2019, the proportion of retail business in revenue and profit maximization were 58% and 69%, respectively. The revenue ratio continued to increase by five alternatives, and the profit ratio continued to strengthen.

In 2020, the company’s retail business will enter a new stage of in-depth transformation. In the future, driven by comprehensive financial and technological innovation, the foundation of the retail business will be further consolidated.

  To sum up, the quality of the company’s performance in 2019 will be more consolidated, and the subsequent growth rate will be more stable.

In the future, the company’s business will have stability and growth. Considering the weak economic environment of the current industry and the policy guidance of the downward interest rate, the downward margin of the company’s future interest and the asset 杭州桑拿网 quality of retail loans need to be actively paid attention.The company’s overweight investment rating.

The company’s 2020 performance growth rate is expected to be 11%, which corresponds to the current expected net city interest rate of 0.

96 times.

  Risk reminders 1) The economy has dropped significantly; 2) The credit risk has increased significantly; 3) The company’s operating risks.