Investment Rating - The report maintains a "Buy" rating for XtalPi, indicating an expected return exceeding 15% over the next 12 months [21]. Core Insights - XtalPi is positioned as an AI-driven innovative R&D platform with stable revenue growth, focusing on drug discovery solutions and intelligent automation services [1][2]. - The company has established strategic partnerships with leading pharmaceutical companies, enhancing its capabilities in drug discovery and automation [1]. - Revenue is projected to grow from RMB 174 million in FY23 to RMB 251 million in FY24 (44% YoY) and further to RMB 434 million in FY25 (73% YoY) [1][4]. Summary by Sections Revenue and Growth - XtalPi's revenue is forecasted to increase significantly, with FY24E revenue at RMB 251 million and FY25E at RMB 434 million, reflecting growth rates of 44% and 73% respectively [4][16]. - The company has a diverse revenue stream from both drug discovery and intelligent automation, which are on stable growth trajectories [3]. Financial Position - XtalPi completed two financing arrangements in 2025, raising HKD 3.2 billion to strengthen its cash reserves and support future growth plans [3]. - The financial summary indicates a net loss reduction from RMB 1,906 million in FY23 to RMB 1,491 million in FY24E, and further to RMB 310 million in FY25E [4][16]. Partnerships and Collaborations - The company has a broad network of partnerships across various industries, including collaborations with GCL Group for new energy materials and with Guangzhou University of Chinese Medicine for traditional medicine R&D [2]. - XtalPi's partnerships with major firms like Microsoft China and JW Pharmaceuticals highlight its potential in biomedicine and new materials innovation [2]. Valuation - The target price for XtalPi is set at HKD 7.57 based on a discounted cash flow (DCF) model, with a weighted average cost of capital of 9.64% and a terminal growth rate of 3.0% [3][13].

Investment Rating - The report maintains a "BUY" rating for XtalPi, indicating a potential return of over 15% over the next 12 months [20]. Core Insights - XtalPi is leveraging its AI-driven innovative R&D platform to achieve stable revenue growth across its two core businesses: drug discovery solutions and intelligent automation solutions. The company has established strategic collaborations with leading pharmaceutical firms, enhancing its market position [9]. - Revenue is projected to grow significantly, from RMB 174 million in FY23 to RMB 251 million in FY24 (+44% YoY), and further to RMB 434 million in FY25 (+73% YoY) [2][9]. - The company has strengthened its financial position by completing two fundraising placements in 2025, raising HK$3.2 billion to enhance cash reserves and fund future growth initiatives [9]. Financial Summary - Revenue growth from FY22 to FY26 is expected to be substantial, with a forecast of RMB 841 million by FY26, reflecting a growth rate of 93.8% YoY [2][15]. - Adjusted net profit is projected to improve from a loss of RMB 1,491 million in FY24 to a loss of RMB 86 million by FY26 [2][12]. - The company’s operating profit is expected to improve significantly, moving from a loss of RMB 640 million in FY24 to a loss of RMB 158 million by FY26 [12][15]. Share Performance - The current price of XtalPi is HK$ 6.68, with a target price set at HK$ 7.57, indicating an upside potential of 13.3% [4]. - The market capitalization of XtalPi is approximately HK$ 26.85 billion [4]. Shareholding Structure - Major shareholders include Tencent Holdings with 10.9% and QuantumPharm ROC with 7.4% [5]. Partnerships and Collaborations - XtalPi has formed diverse partnerships across various industries, including collaborations with GCL Group for new energy materials and with Guangzhou University of Chinese Medicine for TCM drug R&D [9]. - The company is also working with Microsoft China on biomedicine innovations and has a joint venture with Indonesia's Sinar Mas Group to promote AI applications across different sectors [9]. Valuation - The target price of HK$ 7.57 is derived from a DCF model, with a WACC of 9.64% and a terminal growth rate of 3.0% [10].

Investment Rating - The report initiates coverage with a "Buy" rating and a target price of HKD 7.25, representing a potential upside of 24.8% from the current price of HKD 5.81 [1][17][39]. Core Insights - The company, QatmPharm, leverages advanced quantum physics, AI, and robotic automation to accelerate the discovery of new drugs and materials, positioning itself as a global leader in innovative R&D platforms [1][18]. - QatmPharm's integrated technology platform combines high-performance cloud computing, AI, and standardized robotic automation to provide comprehensive drug and materials science R&D solutions [1][12][22]. - The company has established significant partnerships with major global biotech and pharmaceutical firms, including 16 of the top 20 companies by revenue in 2022, enhancing its credibility and market presence [1][14][37]. - Revenue projections indicate substantial growth, with expected total revenues of RMB 306 million, RMB 562 million, and RMB 911 million for FY24E, FY25E, and FY26E respectively, despite anticipated net losses [1][39]. Summary by Sections Drug Discovery Solutions - QatmPharm's drug discovery solutions encompass a modular approach covering the entire drug discovery and research process, including target validation, hit identification, lead generation, and optimization [1][71]. - As of May 13, 2024, the company has secured approximately 159 agreements related to its drug discovery solutions, with some entering the IND enabling stage [1][49]. Financial Analysis - The company is projected to incur net losses of RMB 660 million, RMB 2.81 billion, and RMB 230 million for FY24E, FY25E, and FY26E respectively, while revenues are expected to grow significantly [1][39]. - Historical revenue growth rates show a year-on-year increase of 76%, 112%, and 31% for FY21A, FY22A, and FY23A respectively [1][72]. Market Opportunities - The report highlights significant market opportunities in the AI-driven R&D services sector, with the global drug development outsourcing market expected to grow at a CAGR of 14.9% from USD 12.3 billion in 2023 to USD 32.5 billion by 2030 [1][38]. - The solid-state R&D services market is projected to grow at a CAGR of 27.7%, while the automated R&D laboratory market is expected to grow at a CAGR of 39.6% [1][38]. Strategic Collaborations - QatmPharm has formed strategic collaborations with leading companies such as Pfizer and Johnson & Johnson, which have significantly contributed to its growth and market recognition [1][21][70]. - The company maintains a strong investor base, attracting notable private equity and strategic investors, enhancing its operational capabilities and growth potential [1][14][70].

Investment Rating - Initiate at BUY with a target price of HK$7.25, representing an upside of 24.8% from the current price of HK$5.81 [1]. Core Insights - The report highlights QuantumPharm as a leading company leveraging quantum physics, AI, and robotics to accelerate drug and material discovery, with a focus on integrated technology platforms [4][9]. - The company has established significant collaborations, including a strategic partnership with Pfizer, to enhance its drug R&D capabilities [42][72]. - The report identifies substantial market opportunities in AI-powered R&D service industries, with projected growth rates across various sectors [7][24]. Summary by Sections Investment Thesis - QuantumPharm is positioned to capitalize on the growing demand for AI-powered R&D services, with a well-established integrated technology platform [3]. - The company has entered into approximately 159 agreements for drug discovery solutions, with a notable increase in collaboration programs from 18 in 2021 to 81 in 2023 [5]. Market Opportunities - The global drug R&D outsourcing service market is expected to grow at a CAGR of 14.9%, from US$12.3 billion in 2023 to US$32.5 billion in 2030 [7]. - The solid-state R&D service market is projected to increase at a CAGR of 27.7%, from US$3.8 billion in 2023 to US$20.9 billion in 2030 [7]. - The automated R&D lab market is anticipated to grow at a CAGR of 39.6%, from US$5.9 billion in 2023 to US$60.7 billion in 2030 [7]. - The material science R&D market is expected to expand at a CAGR of 12.8%, from US$76.3 billion in 2023 to US$177.9 billion in 2030 [7]. Business Model - QuantumPharm's business model integrates AI and robotic automation to enhance drug and material discovery processes, focusing on solid-state R&D and automated chemical synthesis [13][14]. - The company has developed a proprietary integrated technology platform that combines cloud supercomputing, quantum physics-based computation, and AI to optimize R&D efficiency [35][36]. Collaborations and Partnerships - The strategic collaboration with Pfizer aims to develop hybrid physics and AI-powered technologies to accelerate drug R&D [43][72]. - QuantumPharm has also partnered with CK Life Sciences to create an AI-powered tumor vaccine R&D platform [23][44]. Financial Analysis - The company's R&D expenditure has increased significantly, from RMB214.4 million in 2021 to RMB480.3 million in 2023, reflecting its commitment to growth [75]. - The customer base has expanded from 75 in 2021 to 187 in 2023, indicating strong demand for its services [77].