On August 31, the CXO sector strengthened again.
Among the individual stocks, Ruizhi Pharmaceutical rose by the daily limit, Tiger Pharmaceuticals, Medicilon, and Asymchem rose by more than 5%.
In addition, Proton and Jiuzhou Pharmaceuticals followed suit
.
Behind the rise of the sector against the trend, analysts believe that it is related to the dazzling performance of listed companies in the CXO industry
.
Taking Wisdom Medicine, whose stock price fluctuates, as an example, on the evening of August 29, the company released its mid-term report.
In the first half of the year, the company achieved revenue of 687 million yuan, a year-on-year decrease of 18.
74%; net profit attributable to the parent reached 957 million yuan, a year-on-year increase of 185 times; The net profit loss was nearly 30 million yuan, a year-on-year decrease of 33.
72 times
.
As for the reasons for the changes in performance, the company explained that the decline in revenue and the sharp increase in net profit attributable to the parent were mainly due to the investment income generated by the company’s previous purchase of its subsidiary, Quantum Hi-Tech’s prebiotic business, and the equity transfer delivery was completed on June 9 this year
.
On the day after Wisdom Medicine released its interim report, the stock fell by more than 7%, but soon rose sharply on the 31st
.
It can be seen from the financial report data that in the first half of this year, the company's main business declined, and its biological, chemical, and CDMO CRO income fell by 9.
54%, 21.
19%, and 50.
28%, respectively, compared with the same period last year.
The equity transfer and delivery of Hui Pharmaceutical was completed on April 2 this year.
After the completion of the delivery, it was no longer included in the consolidated statements.
The income of biological and chemical CROs was affected by the epidemic
.
However, other business revenue increased by nearly 21% over the same period last year, and the gross profit margin in the first half of this year increased by nearly 7% year-on-year
.
Another example is Proton and Asymchem's performance in the first half of this year.
The net profit attributable to the parent company increased by 465% and 305% year-on-year respectively
.
Among them, Asymchem stated in the interim report that benefiting from the overall stable development of the innovative drug industry, the steady increase in the penetration rate of outsourcing, and the continuous improvement of the company's comprehensive competitiveness, the company's orders have grown strongly
.
As of the disclosure date of the semi-annual report, the company's orders in hand amounted to US$1.
47 billion
.
During the reporting period, the company's revenue from various types of customers achieved rapid growth.
The revenue from small and medium-sized pharmaceutical companies reached 1.
333 billion yuan, a year-on-year increase of 70.
48%; the income from large pharmaceutical companies reached 3.
704 billion yuan, a year-on-year increase of 278.
61%
.
Wind data shows that as of August 30, 29 A-share CXO (pharmaceutical outsourcing services, including CDMO and CRO) listed companies have released semi-annual reports, of which 21 have a year-on-year increase in net profit, accounting for more than 70%
.
Judging from the year-on-year growth of net profit attributable to the parent, Wisdom Pharma ranked first with a growth rate of 18,518.
34%, followed by Proton and Asymchem, with year-on-year growth of 465% and 305% respectively.
The growth rate of Yanxin Medicine and Baicheng Medicine is also over 100%
.
Overall, CRO listed companies performed well in the first half of the year
.
Minsheng Securities pointed out that the CXO sector has entered an adjustment stage in the short term.
Considering that the domestic CXO industry is booming, the interim report is good, and the top companies have full orders, the fundamentals of long-term development have not changed.
The broker believes that short-term fluctuations will not change the sector.
Long-term upward trend, active preclinical research and development, and broad development prospects for preclinical CRO companies
.
It is recommended to give priority to suppliers with the integrated advantages of mouse model strain resource library + pharmacological and pharmacodynamic services, as well as established manufacturers that focus on preclinical research services, have a relatively pure business structure, and have a good business foundation and strong industry influence
.
Southwest Securities said that the high growth rate of CXO's construction in progress and fixed assets reflects that the orders are relatively full, and the side shows that the industry is still in a period of high prosperity, and its performance is expected to continue to grow rapidly
.
Soochow Securities also released a research report saying that from a micro perspective, the continuous growth of accounts received in advance and contract liabilities highlights the high prosperity of the domestic CXO industry.
The expansion of corporate personnel and increased investment in construction-in-progress provide production guarantees for order delivery
.
