CXO head performance is eye-catching, and the sector may continue to grow strongly

【Pharmaceutical Network Market Analysis】Up to now, CXO companies have successively released the third quarter report of 2022, on the whole, the performance of companies in the CXO field in the first three quarters is outstanding, especially the third quarter performance of the head manufacturers is more eye-catching
.
From the performance point of view, WuXi AppTec's head effect is prominent, and the net profit of revenue in the first three quarters both increased
.
In the first three quarters, the company achieved operating income of 28.
395 billion yuan, a year-on-year increase of 71.
9%; The net profit attributable to the parent was 7.
378 billion yuan, a year-on-year increase of 107.
1%.

Among them, in the third quarter alone, the company achieved revenue of more than 10 billion yuan, reaching 10.
638 billion yuan
.
WuXi AppTec's strong revenue growth was mainly due to the company's strong execution ability, which fully leveraged the synergy of the company's unique "all-in-one, end-to-end" CRDMO business model, strengthened business diversion between platforms, and provided customers with high-quality services and products
.
Kai Laiying's performance is also remarkable
.
During the reporting period, the revenue reached 7.
812 billion yuan, a year-on-year increase of 167.
25%; The net profit attributable to shareholders of the listed company was 2.
721 billion yuan, a year-on-year increase of 291.
58%.

In the third quarter alone, the revenue reached 2.
77 billion yuan, a year-on-year increase of 138.
25%; The net profit attributable to shareholders of the listed company was 981 million yuan, a year-on-year increase of 269.
40%.

The company said that the strong revenue growth in the first three quarters was mainly due to the effective promotion of
the "two-wheel drive" strategy.
From January to September this year, Porton achieved an operating income of 5.
218 billion yuan, a year-on-year increase of 157.
05%; The net profit attributable to the parent was 1.
578 billion yuan, a year-on-year increase of 337.
42%.

Among them, the revenue in the third quarter grew strongly, achieving revenue of 1.
304 billion yuan, a year-on-year increase of 68.
42%; The net profit attributable to the parent was 365 million yuan, a year-on-year increase of 150.
08%, and the performance achieved rapid growth
for 15 consecutive quarters.
The reason for the significant increase in performance was due to the successive deliveries
of large orders received by the company.
According to the third quarterly report of Zhaoyan New Drug, the company's net profit in the first three quarters was 632 million yuan, a year-on-year increase of 154.
85%.

Among them, the net profit in the third quarter of 2022 alone was 261 million yuan, a year-on-year increase of 176.
77%.

In addition, the top manufacturers in sub-sectors, including Medici, also achieved substantial growth in the single quarter of 2022Q3, and the overall marginal differentiation of the industry is obvious
.
In the field of CXO, many leading companies have undertaken orders
from European and American pharmaceutical giants.
Some brokerage institutions believe that relatively speaking, CXO head companies have full orders, and orders are used as core indicators to reflect the company's competitiveness, increasing certainty for sustainable development
.
Industrial Securities Research Report pointed out that the market share of domestic CXO companies continues to increase, and the subsequent confirmation of business trends in 2023 may gradually catalyze the marginal repair
of the CXO sector.
Minsheng Securities believes that the revenue growth rate of major CXO companies in the first three quarters of 2022 will remain at a high level, and under the impact of the epidemic, the CXO industry will still maintain a high prosperity, and the high-growth attributes of the sector are expected to continue
.
Capital Securities also said that from the perspective of many indicators of the company and the industry, the performance certainty of the CXO sector is strong, and the valuation of major CXO companies has fallen back to the low level in recent years, or has a high allocation value
.
In the long run, the CXO sector has both certainty and growth, with the rapid development of domestic innovative drugs, many research companies will choose to use CXO companies to accelerate the commercialization process through the resource advantages of third parties, which will further bring greater incremental space
to the CXO sector.
At present, the overall scale of China's CXO industry is still relatively small, but the growth is strong
.
According to data released by Frost & Sullivan, the global CRO market size was about $73.
1 billion in 2021, with a CAGR of about 9.
5%
from 2021 to 2024.
Among them, the global clinical CRO market size was about $46.
7 billion in 2021, with a CAGR of about 10.
0%
from 2021 to 2024.
Domestically, the size of China's CRO market was about $10 billion in 2021, with a CAGR of about 30.
3%
from 2021 to 2024.
Among them, the market size of clinical CRO in 2021 is about 5.
6 billion US dollars, and the CAGR from 2021 to 2024 is about 34.
7%.

Disclaimer: Under no circumstances does the information or opinions expressed herein constitute investment advice
to anyone.