A number of CXO companies have released 21-year earnings forecasts, but the market is more concerned about what happens next.
On the evening of January 18, WuXi PharmaTech released an announcement on the pre-increase of 2021 results. It is estimated that the revenue in 2021 will be 22.819 billion yuan to 22.902 billion yuan, a year-on-year increase of 38.0%-38.5%. Net profit was 4.973 billion yuan to 5.032 billion yuan, a year-on-year increase of 68.0%-70.0%. Deducted non-net profit of 4.007 billion yuan to 4.055 billion yuan, a year-on-year increase of 68.0%-70.0%.
Wall Street Insights & Wisdom Research believes that after WuXi AppTec has optimized and integrated in 21 years, the “integrated, end-to-end” CRDMO (Contract Research, Development and Production Organization) business orders demand is strong, which has promoted the accelerated growth of annual performance.Testing business (WuXi Testing)Laboratory analysis and testing business and clinical CRO/SMO business,Biology Business (WuXi Biology)And the small molecule drug discovery service under the chemical business also continued to maintain a strong growth momentum.
The company’s five major divisions after strategic adjustment, chemical business section (WuXi Chemistry), biology business section (WuXi Biology) and testing business section (WuXi Testing), cell and gene therapy CTDMO (WuXiATU) and domestic new drug research and development service department (WuXi DDSU) showed rapid growth. At the previous JPM conference, the company also gave some detailed growth highlights. Through continuous optimization of operating efficiency, the company has continuously improved the utilization rate of production capacity, and the scale effect has been further manifested.
In addition, for the investment income part that the market cares about, in 2021, WuXi PharmaTech invested 1.663 billion yuan in profit caused by the fluctuation of the underlying stock price of listed companies, a decrease of 130 million yuan from the previous year. This part of the profit accounts for about 30% of the company’s expected net profit.
A number of CXO companies have released annual report notices. What does the market care about?
Since a number of CXO companies have announced their annual report forecasts, including WuXi AppTec, Tigermed, Proton, and Medicilon. CXO companies have maintained rapid growth in 21 years.
See Zhi Research’s previous article “Why is the domestic innovative drug sector so fragile? The industry financing window is gradually closed due to the cold secondary market market expected by the market, and the resulting reduction in orders is still looming over the industry. Therefore, the industry is transforming to new technologies, such as cell gene therapy, and subsequent orders. Growth is still the focus that investors need to focus on, because in the context of over-investment in existing technologies, such as monoclonal antibodies, the market needs a blockbuster drug with next-generation technology that can rival the revenue of PD-1.
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