SNSW(SH:688117) GOLDEN SUN SECURITIES·2024-08-26 02:23Investment Rating - The report initiates coverage with a "Buy" rating for the company [1]. Core Views - The company is a pioneer in the peptide field with a comprehensive industry chain layout, capitalizing on the historical opportunity presented by GLP-1 [1]. - The global peptide market is expanding, particularly in weight loss and diabetes management, indicating significant potential for GLP-1 related peptide drugs [1]. - The company has a strong technical reserve and first-mover advantage in the research and production of GLP-1 series peptide drugs, with continuous growth in its API and CDMO businesses [1]. - The inclusion of multiple formulations in national procurement is expected to drive revenue growth through price-volume trade-offs [1]. - The company’s CDMO business is expected to grow steadily, supported by its core technical advantages and integrated R&D production capabilities [1]. Summary by Sections 1. Company Overview - The company has been focused on the peptide field for over 20 years, providing a range of services including API, formulations, and CDMO services [14]. - It has developed advanced core technologies and accumulated extensive R&D experience in peptide drug development and production [14]. 2. Financial Performance - The company’s revenue has shown steady growth, with a CAGR of 14.41% from 2017 to 2023, increasing from 1.94 billion to 4.35 billion [23]. - In the first half of 2024, the company achieved a revenue of 1.99 billion, representing a year-on-year increase of 14.44% [23]. 3. Market Potential - The GLP-1 peptide drug market is expected to grow significantly due to the expiration of patents for several major products, creating opportunities in the peptide generic drug market [1][14]. - The company has a well-established layout in the peptide drug field, with several products being the first generics in China [1][14]. 4. CDMO Business Growth - The CDMO segment has seen revenue growth from 0.50 billion in 2017 to 1.24 billion in 2023, indicating a robust demand for contract development and manufacturing services [1][23]. 5. Profitability Forecast - The company’s net profit is projected to reach 0.92 billion, 1.16 billion, and 1.51 billion for the years 2024, 2025, and 2026, respectively, with corresponding P/E ratios of 31X, 24X, and 19X [1][2].