APELOA(SZ:000739) ZHONGTAI SECURITIES·2024-08-20 01:38Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company reported better-than-expected performance in H1 2024, with revenue and profit showing positive growth despite a high base in Q2. Revenue increased by 7.96% year-on-year to 6.43 billion yuan, while net profit rose by 3.96% to 625 million yuan [2][6] - The company is expected to maintain growth momentum in the second half of 2024 as new production capacity is gradually released and projects are fulfilled [6] Financial Performance Summary - Revenue and Profit Forecasts: - 2024 revenue is projected at 12.72 billion yuan, with a growth rate of 10.82%. Net profit is expected to reach 1.14 billion yuan, growing by 7.90% [2][6] - Key Financial Metrics: - Revenue for H1 2024 was 6.43 billion yuan, with a gross margin of 24.70%, down 1.90 percentage points year-on-year. The second quarter saw revenue of 3.23 billion yuan, up 12.61% year-on-year [2][6] - The company’s net profit margin for H1 2024 was 9.73%, reflecting a stable performance despite market challenges [6] Business Segment Performance - API and Intermediate Products: - Revenue from API intermediates in H1 2024 was 4.70 billion yuan, up 11.89% year-on-year, with a gross margin of 16.22% [18][19] - Formulations: - Formulation revenue reached 679 million yuan in H1 2024, growing by 18.47% year-on-year, with a gross margin of 60.30% [20] - CDMO Services: - CDMO revenue was 1.03 billion yuan in H1 2024, down 9.82% year-on-year, but project numbers are increasing rapidly, indicating potential for recovery [14][15] Cost and Expense Management - Cost Structure: - The overall expense ratio decreased, with selling expenses at 4.36% and management expenses at 3.65% in H1 2024. R&D expenses were 315 million yuan, accounting for 4.90% of revenue [24] - Gross Margin Improvement: - The gross margin improved in Q2 2024 to 25.35%, indicating effective cost management strategies [24] Future Outlook - The company is expected to benefit from a rich pipeline of products and ongoing capacity expansion, which should support sustained revenue growth in the coming years [2][6] - The report highlights the company's strong competitive position and resilience in a challenging industry environment, suggesting a favorable outlook for continued performance improvement [6]