外包服务行业2024年三季报总结：困难环境下恢复增长，看好行业边际趋势向上

Investment Rating - The industry investment rating is "Buy" [1] Core Insights - The overseas investment and financing environment is recovering, leading to a gradual improvement in new orders for the CXO industry, which is expected to enhance company financial performance significantly. The average revenue growth rates for selected CXO companies from Q3 2023 to Q3 2024 show a notable recovery trend [2][11][13] - The long-term growth recovery of the industry, combined with the diminishing marginal impact of legislative changes, suggests that industry valuations are likely to gradually recover. The overall valuation impact from recent legislative developments is expected to weaken in the short term, with revenue growth rates anticipated to bottom out and improve in the medium to long term [2][3][17] - The raw material pharmaceutical sector experienced a slight decline in revenue and profit in Q3 due to the appreciation of the RMB. However, demand is recovering as downstream clients end their inventory reduction and begin to stock up again. The supply side is expected to improve profitability as capacity utilization increases [2][57][68] Summary by Sections 1. Recovery of Overseas Investment and Financing - The overseas investment and financing data shows a recovery trend, with significant year-on-year improvements in financing amounts from July to September 2024 [11][12] - Major companies like WuXi AppTec and Kanglong Chemical have reported substantial increases in new orders, indicating a positive trend in the industry [13][14] 2. Performance of Front-end and Back-end Companies - Back-end CXO companies are showing a recovery in profitability due to cost reduction and increased capacity utilization, while front-end companies are still facing challenges [21][22] - The average revenue growth rates for selected companies indicate a significant recovery from previous declines, with Q3 2024 showing positive growth [22][24] 3. Improvement in Financial Statements - Companies are actively reducing costs and increasing capacity utilization, leading to improved financial statements. The average gross profit margin for selected companies has shown a recovery trend [32][33] 4. Raw Material Pharmaceutical Sector - The raw material pharmaceutical sector's performance in Q3 2024 was affected by exchange rate fluctuations, but overall revenue and profit showed slight year-on-year increases [57][58] - The sector is expected to enter a capacity release phase as the expansion cycle concludes, with profitability anticipated to improve [64][67] 5. Biopharmaceutical Upstream Performance - The upstream biopharmaceutical sector is under pressure, with revenue and profit declines due to weak demand and inventory adjustments. However, there are expectations for gradual recovery as demand stabilizes [80][81][82] 6. Investment Recommendations - The report recommends focusing on companies with high overseas revenue exposure and those that are expected to benefit from improved capacity utilization and profitability. Specific companies highlighted include Boteng Co., Haoyuan Pharmaceutical, and Kanglong Chemical [94][96][97]