Tigermed(300347) 北京商报·2025-04-01 11:42Core Viewpoint - The performance of the domestic clinical CRO leader, Tigermed (300347), has significantly weakened, reporting its worst net profit in nearly seven years for 2024, with a nearly 80% decline in net profit and a drop in both revenue and gross margin [1][3]. Financial Performance - In 2024, Tigermed achieved total operating revenue of 6.603 billion yuan, a decrease of 10.58% compared to 2023 [2][3]. - The net profit attributable to shareholders was 405.14 million yuan, down 79.99% year-on-year, marking the highest decline since the company went public [3]. - The gross margin for the main business dropped from 38.18% in the previous year to 33.27% in 2024 [4]. Business Challenges - The decline in performance is attributed to a significant drop in gross margin, particularly in clinical trial technical services, which fell from 38.21% to 29.56% [4]. - The company faced increased competition and pressure on profit margins due to changes in client risk preferences and cash flow issues among clients reliant on external financing [3][4]. - The average order price for domestic clinical operations decreased, leading to reduced revenue and gross margin [4]. Fair Value Changes - Tigermed reported significant fair value losses in 2024, with a fair value of financial assets at -502 million yuan, compared to a gain of 353 million yuan in the previous year [5][6]. - The company adjusted the fair value of certain investments due to market conditions and financing rounds below previous valuations [6]. Cash Flow and Shareholder Returns - The net cash flow from operating activities for 2024 was 1.097 billion yuan, slightly down from 1.150 billion yuan in 2023 [2][7]. - The company returned approximately 979 million yuan to shareholders through dividends and share buybacks in 2024 [7]. Business Development Initiatives - To enhance profitability, Tigermed has implemented targeted measures in business development (BD), including the establishment of a clinical operations strategy committee and six BD business units based on therapeutic areas [8]. - The growth in orders is primarily driven by demand from large multinational pharmaceutical companies and domestic biotech firms [8]. AI Applications - Tigermed has also focused on AI applications, completing the localization of the open-source model DeepSeek-R1 and developing AI solutions for medical scenarios [9].