智通财经网·2025-08-26 01:16Core Viewpoint - Zhongyin International has slightly lowered the profit forecast for Kanglong Chemical (03759) for 2025-2026 based on more conservative margin assumptions, but has raised revenue forecasts for 2027 and beyond due to strong order momentum offsetting geopolitical disruptions, increasing the target price from HKD 18 to HKD 25 while maintaining a "Buy" rating [1] Group 1: Financial Performance - Kanglong Chemical's revenue grew by 15% year-on-year in the first half of the year, driven by contributions from the top 20 multinational pharmaceutical companies and the European market [1] - The core business, particularly laboratory services and CMC, showed good growth, while clinical CRO stabilized, and the large molecule and cell gene therapy business remained weak [1] - In the second quarter, revenue increased by 14% year-on-year and 8% quarter-on-quarter, with non-IFRS net profit rising by 16% year-on-year and 15% quarter-on-quarter [1] Group 2: Order and Guidance - Kanglong Chemical's new orders in the first half of 2025 increased by over 10% year-on-year, with laboratory services and CMC growing by 10% and 20% respectively, and the addition of 9 Phase III and commercialization projects [1] - The company maintains its full-year revenue growth guidance of 10% to 15%, expecting margin improvement in the second half of the year, primarily benefiting from CMC scale effects, stable contributions from laboratory services, and stabilization of clinical CRO prices [1] - The large molecule and cell gene therapy business is expected to continue to drag on profits in the short term, but is anticipated to achieve breakeven in the medium to long term [1]