Porton(SZ:300363) Ping An Securities·2024-10-25 03:40Investment Rating - The report maintains a "Recommended" rating for the company [1][3] Core Views - The company has seen a recovery in order growth, leading to improved revenue and a reduction in losses [1][3] - The core business has accelerated order signing, with a more than 40% increase in small molecule CDMO orders since Q1 2024, contributing to a revenue of 7.73 billion yuan in Q3, a 10.73% increase year-on-year [3][4] - The gross margin for Q3 improved to 31.09%, continuing a trend of quarterly improvement, driven by higher-value projects and better cost distribution [3][4] - The company is expected to return to profitability by 2025, supported by industry environment improvements and recovery in profitability [3][4] Financial Summary - Q3 revenue reached 7.73 billion yuan, up 10.73% year-on-year, while the net profit attributable to the parent company was -0.36 billion yuan, a decrease of 187.72% [3][4] - The gross margin for Q3 was 31.09%, up from 15.84% in Q1 and 21.81% in Q2 [3][4] - The company adjusted its profit forecasts for 2024-2026 to -2.22 billion yuan, 1.34 billion yuan, and 4.10 billion yuan respectively [3][4] - The projected revenue for 2024 is 3.046 billion yuan, with a year-on-year decline of 16.9%, followed by a recovery in 2025 and 2026 [4][7]