GENSCRIPT BIO(HK:01548) Ge Long Hui·2025-08-20 03:09Core Viewpoint - The company reported strong performance in 1H25, with significant revenue growth and improved profitability metrics, indicating a positive trend in its business operations [1][2]. Financial Performance - The company achieved revenue of $519 million in 1H25, representing a year-on-year increase of 81.9%, with adjusted net profit of $178 million and a net profit margin of 34.3% [1]. - The gross profit was $321 million, corresponding to a gross margin of 61.8%, reflecting enhanced profitability driven by increased capacity utilization and product upgrades [1]. - The net loss attributable to shareholders was $25 million, significantly narrowed from previous periods, primarily due to a $194 million investment loss from a joint venture [1]. Business Segments - The life sciences segment generated $250 million in revenue, up 11.3% year-on-year, driven by strong growth in protein business (52% growth) and demand for gene editing and AI-related R&D [1]. - The CDMO segment saw revenue reach $250 million, a remarkable increase of 511.1%, with a significant one-time payment of $214 million from a licensing agreement [2]. - The industrial synthetic biology segment reported revenue of $3.9 million, an 8.4% increase, although it faced operational losses due to increased R&D investments [2]. Development Trends - The company is focusing on global expansion and strengthening its market position in the life sciences sector, with ongoing investments in sales and R&D to enhance long-term competitiveness [1][2]. - The company expects to achieve key milestones in its CDMO business by the end of 2025 to early 2026, including potential licensing transactions [2]. Profit Forecast and Valuation - The company maintains its profit forecasts for 2025 and 2026, with an upgraded target price of HKD 21.50, reflecting a 22.2% increase based on DCF valuation, indicating a potential upside of 21.3% from current stock prices [2].