On October 26, 2021, Chengdu Pilot's latest Interpretation of hexun SGI index score was released, and the company scored 69 points.
Overall, Chengdu's leading quarterly index roughly shows the characteristics of the "L" pattern, in addition to the 19 years of high, the rest of the quarterly scores are more balanced in the horizontal line of 70 points, which shows that after experiencing high-intensity exogenous impact and depth adjustment, Chengdu Guide is still stuck in the bottom line range, with a relatively stable basic disk.
Figure: Chengdu Pilot and News SGI Index Composite Score
Chengdu Pilot is a company with the research and development of cutting-edge technology in the pharmaceutical industry as the core, from the perspective of core technology, it mainly includes drug design, synthesis and screening, and is also an innovation hotspot in the field of early drug discovery.
According to the disclosed financial report, Chengdu Pilot achieved a total operating income of 150 million yuan in the first half of 2021, an increase of 77.6% year-on-year; achieved a net profit attributable to the mother of 20.658 million, an increase of 33.9% year-on-year, with faster growth and stronger growth.
From the revenue side, in the first half of 2021, under the normalization of the epidemic, some DEL-related sector businesses are also gradually recovering, of which the revenue of DEL screening business has increased by 35% year-on-year, and the recovery is relatively fast.
From the cost side, the company's operating cost in the half year of 2021 was 73.685 million, an increase of 261.8% year-on-year, higher than the growth rate of 77.6% of operating income, resulting in a 24.3% decline in gross profit margin. The expense ratio during the period was 50.2%, down 18% from last year, and the effect of cost control was remarkable. Operating cash flow rose 147% year-on-year, from negative to positive, a significant improvement.
Horse lost front hoof: the shockwave of "Black Swan"
In the index sequence, a very significant feature is the strong contrast between the "thriving" in 2019 and the "horizontal sinking" in the rest of the quarter, what kind of impact effect and risk information is implied behind this index structure?
First of all, from the perspective of the transmission chain of revenue pressure, due to the global epidemic, the strengthening of customs control and the suspension of some international flights, the arrival time of proteins sent by overseas customers in Chengdu and import screening materials purchased by themselves has been greatly extended, reducing turnover and increasing transaction costs.
In addition, some overseas customer laboratories, mainly in the United States, were closed during the epidemic, resulting in some businesses not being completed on time, or failing to complete handover confirmations with customers on time, which adversely affected the main business. In addition, the company's overseas business development activities have also been restricted, resulting in a slowdown in the process of signing some orders.
Secondly, from the perspective of customer sources and revenue composition, according to relevant information, Chengdu's leading customers are mainly multinational pharmaceutical companies, international biotechnology companies and domestic innovative pharmaceutical companies, and overseas revenue accounts for a very high proportion of the total revenue.
For example, taking last year with unusually high data as an example, in the first half of 2020, China's revenue accounted for only 1.15%, overseas revenue accounted for more than 98%, and the proportion of US revenue in total revenue exceeded 80% all year round.
It can be seen that Chengdu Pilot is highly concentrated in the distribution of customer sources, so when the epidemic forces the supply chain and trade chain to be interrupted, it immediately triggers potential risks, revenue plummets, financial performance is slashed, and in the index trend chart, the results of operational differentiation brought about by shockwave are intuitively displayed.
Vertical and horizontal: acquisition to create a "booster"
Judging from the financial report disclosed in the first half of the year, although the epidemic is still fermenting locally or even repeatedly, which has caused a lot of obstacles and frictions for transnational cooperation, Chengdu Pilot still handed over a good growth report card, which stems from the management's growth momentum through acquisitions and technology, and more effectively responds to the challenges of the global epidemic and economic fluctuations.
The first is the strategic acquisition, in 2020, Chengdu Pilot spent 25 million US dollars to complete the acquisition of Vernalis R&D Limited, from the perspective of merger and acquisition motivation, after the completion of the acquisition, Chengdu Pilot will fill the single gap in DEL technology, is expected to expand SBDD/FBDD and protein incubation business, becoming the world's first drug discovery company with both DEL and FBDD/SBDD technology, and then driving the continuous growth of its CRO business segment.
From the perspective of actual results, Vernalis has begun to contribute revenue, and in the first half of the year, Vernalis achieved revenue of 11.3806 million yuan. In addition, the strategy of opening up the domestic market when the foreign market encountered obstacles also saw results, and the revenue from domestic customers in the first half of the year was 22.6614 million yuan, an increase of 1362% year-on-year, accounting for 14.70% of the operating income.
The second is to deepen the technical system, after the acquisition of Vernalis, Chengdu Pilot has mastered 3 technologies in the field of drug discovery: DEL technology, FBDD technology and SBDD technology. According to industry experts, these three technologies have their own unique advantages, and there are only a few companies in the pharmaceutical industry that have all three technologies and are at the forefront. In addition, in recent years, the proportion of Chengdu pilot R&D expenses has been relatively high, and the scale of investment has increased year after year, which provides a basic guarantee for technology-driven to a certain extent.
