Investment Rating - The investment rating for the company is "Buy-A" with a target price of 91.80 CNY for the next six months [6][10]. Core Views - The company reported a revenue of 5.805 billion CNY for 2024, a decrease of 25.82% year-on-year, but excluding large orders, revenue grew by 7.4% [2][3]. - The company has a robust order backlog, with a total of 10.52 billion USD in hand orders for 2024, representing a growth of over 20% year-on-year, indicating potential operational improvement in 2025 [3][10]. - The company is expanding its global supply network, having taken over the Sandwich Site in the UK, which is now operational and securing various orders across multiple fields [4][10]. Revenue and Profit Summary - In 2024, the small molecule business generated revenue of 4.571 billion CNY, with an 8.85% increase when excluding large orders, while emerging businesses achieved 1.226 billion CNY, a 2.25% increase [2][3]. - The net profit for 2024 was 949 million CNY, down 58.17% year-on-year, primarily due to the impact of COVID-19 large orders, capacity ramp-up, and investments in new technology [2][3]. Future Projections - The company expects net profits of 1.104 billion CNY, 1.287 billion CNY, and 1.481 billion CNY for 2025, 2026, and 2027 respectively, with year-on-year growth rates of 16.3%, 16.6%, and 15.1% [10][11]. - The earnings per share (EPS) for 2025 is projected to be 3.06 CNY, with a price-to-earnings (PE) ratio of 30 times, supporting the target price of 91.80 CNY [10][11]. Operational Developments - The company is focusing on expanding its small molecule CDMO services, with a rich project pipeline including 383 preclinical and early clinical projects, 73 clinical III projects, and 48 commercial projects in 2024 [3][10]. - The chemical macromolecule CDMO business is also expected to see significant growth, with over 10 projects in the validation phase anticipated for 2025 [3][10].

Investment Rating - The report maintains an "Overweight - A" rating for the semiconductor industry, with specific stock recommendations including "Buy - A" for Northern Huachuang and "Add - A" for Zhongwei Company [1][2]. Core Insights - The National Integrated Circuit Industry Investment Fund (Big Fund) aims to accelerate the development of the entire semiconductor industry chain, targeting international advanced levels by 2030 [4][6]. - The Big Fund's investment strategy focuses primarily on the manufacturing sector, emphasizing support for leading companies across the industry chain [7][10]. - The first phase of the Big Fund has entered an exit period, while the second phase will concentrate more on equipment and materials [10][16]. Summary by Sections 1. Big Fund Phase One: Accelerating Industry Chain Development - Established in September 2014, the Big Fund raised a total of 138.72 billion yuan, making it the largest single-phase industrial investment fund in China at that time [4][5]. - The fund's investment plan spans 15 years, with the first phase (2015-2019) focused on investment, the second phase (2019-2024) on exit, and the third phase (2025-2030) on extension [4][6]. 2. Investment Layout of Big Fund Phase One - The investment layout is primarily in manufacturing, with 46% in foundry, 17% in design, 6% in materials, 13% in packaging and testing, and 18% in ecosystem development [1][7]. - The fund supports breakthroughs in advanced process technology and capacity expansion in wafer manufacturing, addressing the domestic gap in advanced process capabilities [7][9]. 3. Transition to Phase Two - The second phase of the Big Fund will focus on domestic semiconductor equipment and materials, aiming to enhance the industry's self-sufficiency [10][16]. - The exit of the first phase is seen as a structural adjustment rather than a negative signal for the industry's future, allowing for reinvestment in companies that require further support [10][16]. 4. Investment Recommendations - The report suggests investing in leading companies within the semiconductor industry, particularly those involved in critical areas such as EDA, advanced packaging, and specialized manufacturing processes [13][16].