Xin Lang Cai Jing·2025-10-28 12:29Core Viewpoint - The company reported significantly better-than-expected performance in Q3 2025, with an upward revision of the full-year revenue guidance to a 17%-18% year-over-year growth rate [1][4]. Financial Performance - For the first nine months of 2025, the company achieved a revenue of RMB 32.86 billion (+18.6% YoY), with continuous operating revenue at RMB 32.45 billion (+22.5% YoY) and adjusted Non-IFRS net profit of RMB 10.54 billion (+43.4% YoY), all exceeding market expectations [2]. - In Q3 2025, revenue reached RMB 12.06 billion (+15.3% YoY, +8.2% QoQ), with continuous operating revenue at RMB 12.04 billion (+19.7% YoY, +9.4% QoQ) [2]. - The adjusted Non-IFRS net profit for Q3 2025 was RMB 4.22 billion (+42.0% YoY, +16.1% QoQ), with a net profit margin increasing to 35.0% (+6.6 percentage points YoY, +2.4 percentage points QoQ) [2]. Business Segments - The small molecule D&M revenue and TIDES business continued to drive revenue growth and improve gross margins in Q3 2025, with TIDES revenue growing by 92.1% YoY [3]. - The Wuxi Chemistry segment achieved a revenue growth of 22.7% YoY, supported by the strong performance of small molecule D&M and TIDES [3]. Order Backlog and Guidance - The order backlog reached a record high of RMB 59.88 billion (+41.2% YoY), with new order growth in Q3 2025 accelerating to around 18% [4]. - The company raised its 2025 continuous operating revenue guidance from RMB 42.5-43.5 billion to RMB 43.5-44 billion [4]. Strategic Developments - The company is divesting non-core businesses to enhance profit margins, having signed an agreement to sell its clinical CRO and SMO subsidiaries [5]. - Early-stage business recovery is noted, with positive signals from clients and a return to growth in laboratory testing services [5]. Market Position and Valuation - The company maintains a "Buy" rating and has raised its target prices for Hong Kong and A-shares to HKD 134.5 and RMB 124.4, respectively, based on updated financial information [6].