KAIYUAN SECURITIES·2024-07-31 06:03Investment Rating - The investment rating for the company is "Buy" (maintained) [2][11]. Core Views - The company has shown a steady growth in its order backlog, with a total of 431 billion in hand orders as of June 2024, representing a year-on-year increase of 33.2% when excluding COVID-19 commercialization projects [1]. - The company is expected to maintain its profitability forecasts, with projected net profits for 2024-2026 at 10.401 billion, 11.297 billion, and 12.858 billion respectively, and corresponding EPS of 3.57, 3.88, and 4.42 [1][5]. - The current stock price corresponds to a PE ratio of 11.4, 10.5, and 9.2 for the years 2024, 2025, and 2026 respectively, indicating a favorable valuation [1][5]. Financial Performance Summary - In H1 2024, the company achieved revenue of 17.24 billion, a year-on-year decline of 8.6%, but only a 0.7% decline when excluding COVID-19 projects [1]. - The net profit attributable to the parent company for H1 2024 was 4.24 billion, down 20.2% year-on-year, while the adjusted Non-IFRS net profit was 4.37 billion, down 14.2% [1]. - For Q2 2024, the company reported revenue of 9.26 billion, a year-on-year decline of 6.6% but a quarter-on-quarter increase of 16.0% [1]. Business Segment Performance - The chemical business generated revenue of 12.21 billion in H1 2024, down 9.3% year-on-year, but grew by 2.1% when excluding COVID-19 projects [3]. - The TIDES business saw significant growth, with revenue of 2.08 billion in H1 2024, up 57.2% year-on-year, and a backlog increase of 147% [3]. - Clinical business revenue was 3.02 billion in H1 2024, down 2.4% year-on-year, but the SMO business grew by 20.4% [4].