Jiuzhou Pharmaceutical(603456) KAIYUAN SECURITIES·2024-10-26 10:00Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company is experiencing temporary pressure on its Q3 performance, with a focus on actively advancing new business areas [3] - Despite a decline in revenue and net profit, the company's CDMO business remains stable, and the rapid development of its peptide business is expected to contribute to new revenue growth [3] Financial Performance Summary - For the first three quarters of 2024, the company achieved revenue of 3.965 billion yuan, a year-on-year decline of 13.36%; net profit attributable to shareholders was 631 million yuan, down 34.74% year-on-year; and net profit excluding non-recurring items was 618 million yuan, down 35.04% year-on-year [3] - In Q3 alone, revenue was 1.201 billion yuan, a year-on-year decline of 9.15% and a quarter-on-quarter decline of 6.79%; net profit attributable to shareholders was 156 million yuan, down 54.80% year-on-year and 34.56% quarter-on-quarter [3] - The company has adjusted its profit forecast for 2024-2026, expecting net profits of 854 million, 972 million, and 1.181 billion yuan respectively, with corresponding EPS of 0.95, 1.08, and 1.31 yuan [3] Business Development Summary - The company's raw material CDMO project pipeline is steadily growing, with a 14% year-on-year increase in new projects in H1 2024, totaling 1,103 projects by the end of June 2024 [4] - The company is actively expanding its formulation CDMO business, serving over 60 clients with more than 100 formulation projects, and has seen a project number increase of approximately 32% year-on-year, with revenue growth exceeding 50% [4] - The establishment of the TIDES division in H1 2024 aims to accelerate the development of new business areas, particularly in peptide-conjugated drug technology [5]