SNSW(SH:688117) Haitong Securities·2024-08-12 07:02Investment Rating - The investment rating for the company is "Outperform the Market" [1]. Core Viewpoints - The company focuses on core technology development, creating a full industry chain platform for peptide CDMO, raw materials, and formulations. It has a strong management team with extensive industry experience and a stable core technical team [4][11]. - The peptide market is rapidly developing, with significant growth potential in both domestic and global markets. The company is well-positioned to benefit from this expansion [20][22]. - The company has a robust financial outlook, with projected net profits showing substantial growth over the next few years [6][34]. Summary by Sections Company Overview - The company, established in 2001, specializes in peptide synthesis and modification technologies, providing a range of services including research, production, and sales of peptide raw materials and formulations [4][11]. - The management team is experienced, with the chairman being one of the earliest experts in the peptide drug field, and the core team members have over 15 years of experience [15][19]. Market Performance - The global peptide drug market has shown a compound annual growth rate (CAGR) of 8.17% from 2010 to 2018, with expectations for a CAGR of 7.9% leading to a market size of $49.5 billion by 2027 [20][22]. - The domestic peptide market is expanding rapidly, with significant opportunities for growth driven by supportive policies for innovative drug development [22][24]. Financial Projections - Revenue is expected to grow from 435 million yuan in 2023 to 576 million yuan in 2024, representing a year-on-year growth of 32.5% [6]. - The projected net profits for 2024, 2025, and 2026 are 111 million yuan, 146 million yuan, and 184 million yuan, respectively, indicating growth rates of 58.1%, 31.6%, and 26.0% [6][34]. Business Segments - The company operates in three main segments: peptide CDMO, raw materials, and formulations, leveraging its technological advantages to provide high-quality services [4][11]. - The CDMO market for peptides is expected to grow significantly, with the company positioned to capture a share of this expanding market [27][30]. Competitive Landscape - The company ranks second in the number of peptide raw material registrations in China, indicating a strong competitive position in the domestic market [22][23]. - The peptide drug market is characterized by high barriers to entry, with significant growth potential, particularly in emerging markets [20][22].