Porton(SZ:300363) KAIYUAN SECURITIES·2024-08-31 05:37Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company reported a narrowing loss in Q2, with a steady growth in backlog orders. The revenue for H1 2024 was 1.352 billion yuan, a year-on-year decline of 42.19%. Excluding significant orders, the revenue decline was approximately 4% [5][6] - The net profit attributable to the parent company for H1 2024 was -170 million yuan, with a non-recurring net profit of -174 million yuan. In Q2 alone, the company achieved a revenue of 674 million yuan, a year-on-year decline of 29.82% and a quarter-on-quarter decline of 0.49% [5] - The company’s performance was under pressure due to several factors, including the delivery of large orders, insufficient capacity utilization, and increased depreciation from new capacity investments. Emerging businesses such as formulations, ADC, and CGT CDMO are still in the early stages, collectively impacting the net profit by approximately -108 million yuan [5][6] Financial Summary - For H1 2024, the small molecule API CDMO business generated revenue of 1.251 billion yuan, a year-on-year decline of about 45%. However, the backlog of unfulfilled orders in this segment increased by approximately 40% year-on-year, with 533 signed projects, a 14% increase [6] - The new business capabilities are progressing, with the formulation and CGT businesses achieving revenues of 65.56 million yuan and 19.04 million yuan, respectively. The new signed order amount for formulations was approximately 113 million yuan, a 40% year-on-year increase [7] - The company maintains its profit forecast, expecting net profits attributable to the parent company to be -95 million yuan, 111 million yuan, and 288 million yuan for 2024, 2025, and 2026, respectively. The current stock price corresponds to a PE ratio of 58.7 and 22.6 times for 2025 and 2026 [5][8]