PHARMARON(SZ:300759) Xinda Securities·2024-08-28 07:30Investment Rating - The report assigns a "Buy" rating for Kanglong Chemical (300759) based on its performance and growth potential [1]. Core Views - The company reported a slight decline in revenue for H1 2024, with total revenue at 56.04 billion yuan, a year-on-year decrease of 0.63%. However, net profit attributable to shareholders increased by 41.64% to 11.13 billion yuan [1]. - New orders have shown a positive trend, with a year-on-year growth of over 15%, indicating a potential recovery in business performance [1]. - The company is expected to see revenue growth in the second half of 2024, driven by an increase in new orders and improved operational capacity [1]. Financial Performance Summary - For H1 2024, the company achieved a gross margin of 33.39%, a decrease of 2.94 percentage points year-on-year, while the net profit margin increased by 5.93 percentage points to 19.87% [1]. - The company’s revenue from laboratory services was 33.71 billion yuan, with a gross margin of 44.46%. New orders in this segment grew by over 10% [1]. - In the CMC services segment, revenue was 11.76 billion yuan, with a gross margin of 28.30%, and new orders increased by over 25% [1]. - The clinical research services segment reported revenue of 8.43 billion yuan, with a gross margin of 12.55% [1]. - The company added over 360 new clients in H1 2024, bringing the total active clients to over 2,200 [1]. Revenue Forecast - The company is projected to achieve revenues of 127.66 billion yuan, 144.92 billion yuan, and 168.79 billion yuan for the years 2024, 2025, and 2026, respectively, representing year-on-year growth rates of 10.6%, 13.5%, and 16.5% [2]. - Net profit attributable to shareholders is expected to be 16.73 billion yuan, 20.48 billion yuan, and 25.62 billion yuan for the same years, with growth rates of 4.5%, 22.4%, and 25.1% [2].