Jiuzhou Pharmaceutical(603456) KAIYUAN SECURITIES·2024-08-31 05:37Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The company is experiencing a steady growth in new CDMO projects and is actively expanding into new business areas. Despite facing pressure on performance in the first half of 2024, the rapid development of emerging business sectors is expected to contribute to new revenue streams [4][5][6]. Financial Performance - In H1 2024, the company achieved revenue of 2.764 billion yuan, a year-on-year decline of 15.07%. The net profit attributable to the parent company was 475 million yuan, down 23.62% year-on-year. For Q2 alone, revenue was 1.288 billion yuan, a year-on-year decline of 14.29% and a quarter-on-quarter decline of 12.69% [4]. - The company has adjusted its profit forecasts for 2024-2026, now expecting net profits of 1.036 billion yuan, 1.185 billion yuan, and 1.414 billion yuan respectively, with corresponding EPS of 1.15, 1.32, and 1.57 yuan [4]. CDMO Business Development - The company’s API CDMO pipeline is increasingly rich, with a 14% year-on-year increase in new projects in H1 2024. As of June 2024, the total number of projects reached 1,103, including 34 approved, 81 in Phase III clinical trials, and 988 in Phase I/II clinical trials [5]. - The formulation CDMO business is also expanding rapidly, with the service projects increasing by approximately 32% year-on-year and revenue growth exceeding 50% [5]. New Business Initiatives - The company established the TIDES division in H1 2024, which focuses on peptide-conjugated drug technology. The company has completed the layout planning for its peptide platform and production capacity, expecting rapid increases in GMP capacity in the coming years [6]. - The company is also advancing its small nucleic acid drug R&D platform in both the US and China, accelerating the construction of GMP pilot production and commercial workshops [6].