SNSW(SH:688117) Guotai Junan Securities·2024-10-31 01:14Investment Rating - The report maintains a rating of "Buy" for Shengnuo Bio (688117) with a target price of 37.50, up from the previous target of 28.21 [5][10]. Core Insights - The company is expected to see sustained growth due to the gradual ramp-up of peptide raw materials and the signing of GLP-1 peptide raw material orders, which will resonate with production capacity orders [3][10]. - For the first three quarters of 2024, the company reported revenue of 338 million yuan, a year-on-year increase of 16.00%, and a net profit attributable to shareholders of 57 million yuan, up 63.66% year-on-year [10]. - The gross margin for Q1-Q3 2024 was 58.99%, down 4.01 percentage points year-on-year, but the gross margin for Q3 improved by 2.44 percentage points quarter-on-quarter, indicating a recovery driven by the release of peptide raw materials [10]. Financial Performance Summary - Revenue for 2024 is projected to be 535 million yuan, with a year-on-year growth of 23.1%, and net profit is expected to reach 102 million yuan, reflecting a growth of 45.6% [11]. - The company has developed 19 self-researched peptide raw material varieties, with 14 obtaining domestic production licenses and 9 receiving US DMF filings [10]. - The company signed contracts for GLP-1 peptide raw materials worth up to 350 million yuan (including tax) in September 2024, with a performance period until December 31, 2025 [10]. Market Position and Competitive Landscape - The report highlights the company's strong position in the peptide market, with significant growth in overseas sales of raw materials, which increased by 97.51% year-on-year in H1 2024 [10]. - The company is also advancing its CDMO services for innovative peptide drugs, having provided services for over 40 projects, with two successfully approved for commercialization [10]. Valuation Metrics - The report suggests a valuation premium based on the continuous release of peptide production capacity, projecting a PE of 30X for 2025 [10]. - The financial summary indicates a projected EPS of 0.91, 1.25, and 1.58 yuan for 2024, 2025, and 2026 respectively [11].