GemPharmatech (SH:688046) Guoxin Securities·2024-09-02 12:32Investment Rating - The investment rating for the company is "Outperform the Market" [1][4][9]. Core Views - The company achieved a revenue of 340 million yuan in H1 2024, representing a year-on-year increase of 15.1%, primarily driven by the release of new domestic production capacity and expansion in overseas markets [1][5]. - The net profit attributable to the parent company was 76 million yuan, a decrease of 1.6% year-on-year, while the net profit excluding non-recurring items was 55 million yuan, an increase of 10.7% year-on-year [1][5]. - The overseas market revenue grew by 45% year-on-year, contributing to 18.3% of total revenue, with over 200 overseas clients served [1][8]. Summary by Sections Financial Performance - In Q1 2024, the company reported revenue of 157 million yuan (up 12.0% year-on-year) and in Q2 2024, revenue was 183 million yuan (up 17.8% year-on-year) [1][5]. - The company expects net profits for 2024, 2025, and 2026 to be 204 million, 259 million, and 297 million yuan respectively, with corresponding P/E ratios of 22, 17, and 15 times [1][9]. Market Expansion - The domestic market generated 278 million yuan in H1 2024, a 10.0% increase year-on-year, with nearly 2000 domestic clients served [1][8]. - The company has successfully expanded into high-potential cities such as Beijing, Tianjin, Wuhan, Changsha, and Zhengzhou, enhancing its market penetration [1][8]. Capacity Utilization - New facilities in Beijing, Shanghai, and Guangdong have been operational since the second half of 2023, with a total capacity of approximately 80,000 cages, leading to improved capacity utilization in H1 2024 [1][8]. - The first overseas facility in San Diego, USA, has been operational since Q1 2024, enhancing service capabilities for overseas clients [1][8].