WuXi PharmaTech (603259): Revenue side continues to accelerate various businesses to maintain rapid growth

WuXi PharmaTech (603259): Revenue side continues to accelerate various businesses to maintain rapid growth
Investment Highlights Recently, WuXi PharmaTech released its 2019 third quarter report, which has reported that the company has achieved sales revenue of 92.7.9 billion, an annual increase of 34.06%; net profit attributable to mother 17.6.5 billion, down 8 previously.46%; net profit of non-attributed mothers is 17.1.4 billion, an increase of 36 in ten years.88%; earnings per share 1.07 yuan. Profit forecast: As a domestic CRO leader, the company will take its place in the international market. Against the background of the rapid development of China’s CRO industry, the company takes full advantage of its internal leadership, the advantages of the entire industry chain, and better service quality and efficiency. Both the CRO business and the CMO / CDMO business revenue are expected to maintain steady and rapid growth.At the same time, the company actively invests in the deployment of advanced global enterprises, and while forming synergies with its own business, the investment income promotes the increase of the company’s performance. We expect the company to maintain a rapid growth of more than 30% on the revenue side in 2019; although the profit side is affected by many factors, it is expected that the growth rate of the adjusted non-IFRS net profit attributable to the mother will be flat or exceed the revenue growth.We raise our profit forecast and expect the company’s EPS for 2019-2021 to be 1.30 yuan, 1.64 yuan, 2.05 yuan, on October 30, 2019, the corresponding PE is 武汉夜生活网 66 times, 52 times, and 42 times, respectively, maintaining the level of “prudent increase”. Risk Warning: New Orders Get Less Than Expected; Core Clients Maintain Risk; Exchange Rate Fluctuation Risk; Investment Income Fluctuation Risk