Investment Rating - The report maintains a "Buy" rating for the company, with an increased target price of HKD 30 for the Hong Kong stock and RMB 39.6 for the A-share [10][19]. Core Insights - The company has experienced a significant acceleration in new orders, particularly in the laboratory services segment, leading to an upward revision of the full-year revenue growth guidance to 12%-16% [3][10]. - The acquisition of Bai Aode is expected to enhance the company's service capabilities in the laboratory services sector, attracting more clients and projects [2][9]. - The revenue for Q3 2025 was approximately RMB 3.64 billion, reflecting a year-on-year increase of 13.4% and a quarter-on-quarter increase of 9.1%, aligning with expectations [2][3]. Summary by Sections Revenue and Profitability - For the first nine months of 2025, the overall new orders increased by over 13% year-on-year, with laboratory services showing a growth rate of over 12% [3][4]. - The CMC segment achieved a revenue growth of 12.7% year-on-year and 29.6% quarter-on-quarter in Q3 2025, driven by strong new orders and project deliveries [9][10]. - The gross margin for Q3 2025 was 34.3%, stable year-on-year and up 0.6 percentage points quarter-on-quarter [2][3]. Client Contributions - The top 20 pharmaceutical companies contributed a revenue growth of 22.2% year-on-year in Q3 2025, despite a slight slowdown from the first half of the year [4][10]. - The management indicated that the strategic expansion with top clients has led to impressive growth across CMC, laboratory services, and bioscience services [4][9]. Future Outlook - The company anticipates that the recovery of overseas financing and a strong performance in the Chinese capital market will lead to a more pronounced recovery among small and medium clients in 2026 [3][10]. - The report projects a slight adjustment in the company's adjusted net profit for 2025E to RMB 1.664 billion, reflecting a year-on-year decrease of 7.2% [11][12].

Core Insights - Goldman Sachs reported that Kanglong Chemical's third-quarter revenue reached 3.65 billion yuan, representing a year-on-year growth of 13.4% and a quarter-on-quarter growth of 9.1%, slightly above Goldman Sachs' original expectation of 3.48 billion yuan [1] - Revenue growth was primarily driven by the continued momentum in the CMC and bioscience sectors, with an increased contribution from the top twenty pharmaceutical clients [1] - The non-IFRS adjusted net profit margin improved to 12.9%, compared to 11.3% in the first quarter and 12.2% in the second quarter, benefiting from increased utilization and operational leverage [1] - Management raised the full-year revenue growth guidance from 10%-15% year-on-year to 12%-16% [1] - Goldman Sachs slightly lowered its net profit forecasts for 2025 to 2027 by 0.1%, 0.1%, and 0.5% respectively; the H-share rating was upgraded to "Buy" with a target price raised from 26.6 HKD to 30 HKD, while the A-share rating was maintained at "Neutral" with a target price increased from 36.6 CNY to 38.5 CNY [1]

高盛发表报告指，康龙化成第三季度收入为36.5亿元，按年增长13.4%，按季增长9.1%，略高于高盛原 预期的34.8亿元。收入增长主要由CMC和生物科学板块的持续动能推动，前二十大制药客户贡献度提 升。non-IFRS调整后净利润率提升至12.9%，对比第一季度11.3%及第二季度12.2%，受益于利用率提升 和经营杠杆。管理层将全年收入增长指引从按年10%至15%，上调至12%至16%。高盛对其2025至2027 年各年净利润预测微降0.1%、0.1%及0.5%；H股评级"买入"，目标价由26.6港元上调至30港元，A股评 级"中性"，目标价由36.6元上调至38.5元。 ...

Group 1 - The core viewpoint of the report is that 康龙化成 has raised its revenue growth guidance for 2025 from an annual increase of 10%-15% to 12%-16%, expecting double-digit growth in adjusted net profit [1] - The report highlights that the increase in guidance and accumulation of orders is a positive sign amid geopolitical uncertainties for the end of this year and into next year [1] - The target price for 康龙化成's H-shares has been raised from HKD 24.7 to HKD 28.8, and the target price for A-shares has been increased from CNY 34.8 to CNY 40.6, while maintaining an "outperform" rating [1]

Core Viewpoint - Credit Suisse has raised its revenue growth guidance for Kanglong Chemical (300759) from a year-on-year increase of 10%-15% to 12%-16%, expecting adjusted net profit to achieve double-digit growth [1] Group 1 - The increase in guidance and accumulation of orders for Kanglong Chemical is seen as positive for the company from the end of this year to next year [1] - Credit Suisse has revised its revenue and net profit forecasts for Kanglong Chemical for the years 2025 to 2027 [1] Group 2 - The target price for Kanglong Chemical's H-shares has been raised from HKD 24.7 to HKD 28.8, while the target price for A-shares has increased from RMB 34.8 to RMB 40.6 [1] - The rating for Kanglong Chemical remains "Outperform" [1]

Core Viewpoint - The report from Credit Lyonnais indicates that Kanglong Chemical (03759, 300759.SZ) has raised its revenue growth guidance for 2025 from a year-on-year increase of 10% to 15% to a new range of 12% to 16%, with expectations for adjusted net profit to achieve double-digit growth [1] Group 1 - Credit Lyonnais views the upward revision of guidance and the increase in accumulated orders for Kanglong Chemical as positive developments for the company [1] - The firm has revised its revenue and net profit forecasts for Kanglong Chemical for the years 2025 to 2027 [1] Group 2 - The target price for Kanglong Chemical's H-shares has been raised from HKD 24.7 to HKD 28.8, while the target price for A-shares has been increased from RMB 34.8 to RMB 40.6 [1] - Credit Lyonnais maintains a "Outperform" rating for Kanglong Chemical [1]

Core Viewpoint - 康龙化成's stock has shown a significant increase in price and trading activity, reflecting positive market sentiment despite a decline in net profit year-over-year [1][2]. Financial Performance - As of September 30, 康龙化成 reported a revenue of 100.86 billion yuan for the first nine months of 2025, representing a year-over-year growth of 14.38% [2]. - The company's net profit attributable to shareholders was 11.41 billion yuan, which is a decrease of 19.76% compared to the previous year [2]. Stock Performance - 康龙化成's stock price increased by 32.63% year-to-date, with a recent 5-day increase of 4.58% and a 20-day decline of 2.25% [1]. - The stock was trading at 33.82 yuan per share with a market capitalization of 601.39 billion yuan as of October 31 [1]. Shareholder Information - The number of shareholders decreased by 1.62% to 86,500 as of September 30, 2025 [2]. - Major shareholders include 中欧医疗健康混合A and 香港中央结算有限公司, with both increasing their holdings [3]. Business Segmentation - 康龙化成's main business segments include laboratory services (60.43%), CMC services (21.58%), clinical research services (14.58%), and other services [1].

Group 1 - The core viewpoint of the articles highlights the strong performance of Kanglong Chemical in Q3, with a revenue of 3.645 billion yuan, representing a year-on-year growth of 13.44%, and a net profit of 440 million yuan, which is a significant increase of 42.52% compared to last year [1] - Kanglong Chemical has raised its full-year revenue growth target to 12-16% based on the performance in the first three quarters of the year [1] - The company announced the acquisition of 82.54% of Baiaode for 1.346 billion yuan, enhancing its capabilities in drug discovery through comprehensive services from gene analysis to cryo-electron microscopy [1] Group 2 - The recent strong performance reports from leading CXO companies like WuXi AppTec and Kanglong Chemical have boosted market confidence in the innovative drug sector [1] - The innovative drug sector is expected to see more policy-driven catalysts as concerns over market bubbles have diminished following a phase of adjustment [1] - Related ETFs in the innovative drug industry include the Hong Kong Stock Connect Medical ETF (520510), which has a leading CXO content, and the Hang Seng Pharmaceutical ETF (159892), which emphasizes innovation [2]

Core Viewpoint - UBS reported that Kanglong Chemical (03759) achieved a 13.4% year-on-year revenue increase in Q3, reaching 3.65 billion RMB, which is in line with market and UBS forecasts of 3.6 billion and 3.7 billion RMB respectively [1] - Net profit rose by 42.5% year-on-year to 440 million RMB, which fell short of market and UBS predictions of 467 million and 506 million RMB respectively [1] - The company saw a 13% year-on-year growth in new orders for the first three quarters, accelerating from approximately 10% growth in the first half of the year [1] - UBS slightly raised its revenue and net profit forecasts for the company from 2023 to 2027, increasing the target price for the H-shares from 31 HKD to 32.9 HKD while maintaining a "Buy" rating [1] Financial Performance - Q3 revenue increased by 13.4% to 3.65 billion RMB [1] - Net profit increased by 42.5% to 440 million RMB [1] - New orders grew by 13% year-on-year in the first three quarters [1] Forecast Adjustments - UBS adjusted revenue and net profit forecasts for the company for the years 2023 to 2027 [1] - Target price for H-shares raised from 31 HKD to 32.9 HKD [1] - "Buy" rating maintained by UBS [1]

Core Viewpoint - 康龙化成 is experiencing a positive trend in its CMC service gross margin, with expectations for continued growth in the upcoming quarters [1] Financial Performance - The gross margin for CMC services in Q3 2025 is reported at 34.6%, reflecting a 4 percentage point increase quarter-over-quarter [1] - The company anticipates that the gross margin for Q4 will continue to improve sequentially, with the full-year gross margin expected to be slightly above 33%, compared to the same period last year [1] Capital Expenditure - The projected capital expenditure for 2025 is over 2 billion yuan, primarily allocated for laboratory services in China and small molecule CDMO capacity expansion, including new capacity in Beijing and the second phase project in Shaoxing [1] - Future capital expenditures are expected to remain at similar levels, with operating cash flow sufficient to cover these expenditures [1] Innovation and Technology Investment - 康龙化成 is committed to ongoing investments in new technology areas, including organoids and AI [1] - The company aims to maintain sustainable positive free cash flow [1]