Menovo(SH:603538) Tianfeng Securities·2024-11-11 05:53Investment Rating - The report maintains a "Buy" rating for the company, with a target price indicating a potential upside of 10%-20% over the next six months [5]. Core Insights - The company's revenue for Q1-Q3 2024 reached 949 million yuan, representing a year-over-year increase of 2.21%, while the net profit attributable to shareholders was 63 million yuan, up 15.97% year-over-year [1]. - The contract manufacturing business has started to gain momentum, with expectations for significant growth in production capacity and revenue in the upcoming quarters [2]. - The collaboration with major clients, including Merck and Sun Pharma, is expected to provide stable long-term revenue growth due to ongoing projects and successful quality audits [3]. Summary by Sections Financial Performance - For Q3 2024, the company reported a revenue of 341 million yuan, a decrease of 1.46% year-over-year, but a net profit of 44 million yuan, which is an increase of 87.08% year-over-year [1]. - The gross margin for Q3 2024 improved to 36.09%, up from 24.39% in Q2 2024, indicating a significant recovery in profitability [2]. Business Development - The contract manufacturing business is expected to accelerate in Q4 2024, driven by the full utilization of production lines and increased output [2]. - The company has established deep collaborations with major pharmaceutical companies, which are anticipated to yield continuous orders and long-term benefits [3]. Revenue and Profit Forecast - The revenue projections for 2024-2026 have been revised upwards to 1.481 billion, 1.870 billion, and 2.298 billion yuan respectively, with net profits expected to reach 94 million, 207 million, and 255 million yuan [4].