The company was founded in 2002 and listed on Shenzhen gem in 2015, specializing in CRO services, clinical research services is the company's main source of income and profit. Clinical research services accounted for 53.29% of the company's main business revenue in 2020, rising to 57.41% in the first half of 2021.
In the first half of 2021, the company achieved clinical research service income of 67.4 million yuan, an increase of 30% over the same period last year, mainly due to the good control of the domestic epidemic. According to the half-year clinical business accounting for 57.41%, the company's clinical research service revenue in the third quarter was about 55.91 million yuan, accelerating growth over the first half of the year.
In recent years, under the background of the normalization of medical insurance cost control and volume procurement, the innovative drug industry in China has developed rapidly. This has led to a rapid increase in the scale of the clinical market. In 2020, the domestic CRO market was worth US $8.3 billion, of which the clinical CRO market was US $6 billion and the preclinical CRO market was US $2.3 billion. The compound growth rate in the next three years is expected to be 27.49%, much higher than the global market growth rate.
The company has the advantage of clinical resources in the fields of digestion, oncology and liver disease, and is expected to benefit from the growth of the industry. In addition, the company has obtained GLP laboratory certification, and the CDMO project is progressing steadily. At the same time, the ability to undertake integrated projects is being strengthened in the preclinical R & D service business of innovative drugs.
The company is expected to earn 0.21 yuan per share in 2021, 0.24 yuan per share in 2022 and 0.36 yuan per share in 2023, corresponding to the closing price of 13.75 yuan on November 15, with a dynamic price-to-earnings ratio of 65.48 times, 57.29 times and 38.19 times respectively.
Risk hint: on-hand orders can not continuously and steadily confirm revenue, and the epidemic breaks out again.