GENSCRIPT BIO(HK:01548) Zhi Tong Cai Jing·2025-08-18 03:24Core Viewpoint - CICC maintains its earnings forecast for King’s Ray Biotechnology (01548) for 2025 and 2026, reiterating an outperform rating, while raising the target price by 22.2% to HKD 21.50, indicating a 21.3% upside from the current stock price [1] Group 1: Financial Performance - For 1H25, the company reported revenue of USD 519 million, a year-on-year increase of 81.9%, with adjusted net profit of USD 178 million, corresponding to a net profit margin of 34.3% [2] - The gross profit was USD 321 million, with a gross margin of 61.8%, reflecting improved profitability driven by capacity utilization, economies of scale, and high-end product upgrades [2] - The net loss attributable to shareholders was USD 25 million, significantly narrowed year-on-year, primarily due to a USD 194 million loss from the investment in Legend Biotech [2] Group 2: Business Segments - The life sciences segment achieved revenue of USD 250 million in 1H25, up 11.3% year-on-year, driven by protein business growth of 52% and demand from gene editing and AI-related R&D [3] - The CDMO segment saw revenue of USD 250 million, a remarkable increase of 511.1%, with a one-time payment of USD 214 million from the licensing agreement with Lixin contributing to this growth [4] - The industrial synthetic biology segment reported revenue of USD 39 million, an 8.4% increase year-on-year, with losses attributed to increased R&D investments [5]