Porton(SZ:300363) KAIYUAN SECURITIES·2024-10-25 09:31Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has shown a recovery in revenue growth in Q3, with a 10.73% year-on-year increase and a 14.65% quarter-on-quarter increase, despite a 30.02% decline in revenue year-to-date [4][5] - The net loss for Q3 narrowed to -36.39 million yuan, indicating an improvement compared to Q2 [4] - The company is experiencing steady growth in its small molecule CDMO business, with a significant increase in unfulfilled orders [5] - New business segments, including formulation and CGT, are also showing promising growth, with substantial increases in new order amounts [6] Financial Performance Summary - For the first three quarters of 2024, the company achieved revenue of 2.125 billion yuan, down 30.02% year-on-year, but with a 6% increase when excluding major orders [4] - The Q3 revenue was 773 million yuan, with a gross margin of 31.09%, reflecting a 9.28 percentage point increase from the previous quarter [4] - The projected net profit for 2024-2026 is revised to -251 million, 61 million, and 153 million yuan respectively, with EPS estimates of -0.46, 0.11, and 0.28 yuan [4] - The company’s small molecule API business saw a revenue increase of 42% year-on-year, indicating a recovery trend [5] Business Segment Performance - The small molecule API CDMO business generated 1.968 billion yuan in revenue, down approximately 33% year-on-year, but grew by 3% when excluding major orders [5] - The formulation and CGT businesses reported revenues of 101 million and 40 million yuan respectively, with year-on-year growth rates of 65% and 27% [6] - The number of signed orders in the formulation business increased by 40% year-on-year, while CGT business saw a remarkable 188% increase in new signed orders [6]