A number of CXO companies have released 21-year earnings forecasts, but the market is more concerned regarding 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 following 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)As well as small molecule drug discovery services under the chemical business, they also continued to maintain strong growth momentum.
The company’s five major divisions following 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 regarding, 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 regarding 30% of the company’s expected net profit.
A number of CXO companies have released annual report notices. What does the market care regarding?
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 in the previous article “Why is the domestic innovative drug sector so fragile? | See Wisdom Research“The industry’s 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’s transformation to new technologies, such as cell gene therapy, and subsequent order growth are still investments. This is the key point that players need to pay attention to, because in the context of over-investment in existing technologies, such as monoclonal antibodies, the market needs an explosive drug with next-generation technology that can rival the revenue of PD-1.
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