Jiangsu Sinopep-Allsino Biopharmaceutical (SH:688076) Guoxin Securities·2024-10-31 07:48Investment Rating - The investment rating for the company is "Outperform the Market" [5][17]. Core Views - The company has demonstrated impressive performance with a significant increase in profitability, as evidenced by a revenue of 1.252 billion yuan (+76.51%) and a net profit of 350 million yuan (+281.90%) for the first three quarters of 2024 [1][2]. - The growth in revenue is primarily driven by the rapid increase in sales of peptide raw materials, with profit growth outpacing revenue growth due to economies of scale and a higher proportion of high-margin products [1][2]. - The company is expanding its peptide production capacity, with plans to reach an annual capacity of 10 tons by the end of 2025, which is expected to further enhance its market position [3]. Financial Performance Summary - For the first three quarters of 2024, the company achieved a gross margin of 69.32% (+8.63 percentage points), reflecting improved profitability due to scale effects and a higher proportion of high-margin products [2]. - The company’s net profit margin reached 27.97% (+15.04 percentage points), indicating a significant enhancement in profitability [2]. - The company has increased its R&D expense ratio to 13.80% (+1.76 percentage points) as part of its strategy to build technological barriers [2]. Earnings Forecast and Financial Metrics - The company’s revenue is projected to grow to 1.738 billion yuan in 2024, representing a year-on-year increase of 68% [4]. - The forecasted net profit for 2024 is 469 million yuan, reflecting a substantial growth rate of 187.6% compared to the previous year [4]. - The expected earnings per share (EPS) for 2024 is 2.13 yuan, with a projected PE ratio of 24.3x [4][15].