Zhi Tong Cai Jing·2025-11-03 08:56Core Viewpoint - Goldman Sachs has slightly reduced its net profit forecasts for Kanglong Chemical (300759) for the years 2025 to 2027 by 0.1%, 0.1%, and 0.5% respectively, while maintaining a "Buy" rating for its H-shares and a neutral rating for its A-shares [1] Group 1: Financial Performance - Kanglong Chemical reported third-quarter revenue of 3.65 billion RMB, representing a year-on-year growth of 13.4% and a quarter-on-quarter increase of 9.1%, slightly above Goldman Sachs' previous expectation of 3.48 billion RMB [1] - The growth in revenue was primarily driven by sustained momentum in the CMC and bioscience sectors, with contributions from the top twenty pharmaceutical clients increasing [1] - The non-IFRS adjusted net profit margin improved to 12.9%, compared to 11.3% in the first quarter and 12.2% in the second quarter, benefiting from increased utilization and operational leverage [1] Group 2: Management Guidance - The management of Kanglong Chemical has raised its full-year revenue growth guidance from 10%-15% year-on-year to 12%-16%, indicating a fourth-quarter growth of 6%-20% [2] - It is expected that the profit margin in the fourth quarter will further improve compared to the first three quarters, although the overall non-IFRS profit margin for the year may be slightly lower than in 2024 due to profit margin dilution from new capacity released in the first quarter [2] - Management remains confident in achieving the revised guidance, citing strong growth in CMC orders, ongoing capacity expansion, and improvements in core business profit margins [2]