Porton(SZ:300363) Xin Lang Cai Jing·2025-10-27 06:37Core Viewpoint - The company reported a strong financial performance in Q3 2025, with significant revenue growth and a return to profitability, driven by high-value commercialization projects and cost reduction measures [1][2]. Financial Performance - For the first three quarters of 2025, the company achieved a revenue of 2.544 billion yuan, representing a year-on-year increase of 19.7%, and a net profit attributable to shareholders of 80 million yuan, marking a turnaround from losses [1]. - In Q3 2025 alone, the company generated revenue of 923 million yuan, up 19.4% year-on-year and 12.7% quarter-on-quarter, with a net profit of 53 million yuan, continuing the trend of profitability recovery [1]. - The gross margin for the first three quarters of 2025 was 28.9%, an increase of 5.6 percentage points year-on-year, with the overseas market gross margin around 40% and the domestic market gross margin at approximately 1% [2]. Business Development - The core business of small molecule CDMO showed steady growth, with revenue of 2.350 billion yuan in the first three quarters of 2025, a year-on-year increase of 19%, driven by the ramp-up of high-value projects [2]. - The overseas market contributed 1.805 billion yuan in revenue, up 17% year-on-year, while the Chinese market generated 739 million yuan, reflecting a 21% increase [2]. - New business segments are showing a clear path to reduced losses, with small molecule formulation CDMO revenue flat year-on-year, and gene and cell therapy revenue at 42.86 million yuan, a growth of about 7% [3]. Profitability Outlook - The company has adjusted its net profit forecasts for 2025 and 2026 upwards by 100.5% and 15.9% respectively, now projecting net profits of 140 million yuan and 270 million yuan [4]. - The target price has been raised by 7.1% to 30.00 yuan, indicating a potential upside of 17.1% from the current stock price, based on DCF valuation [4].