Jiuzhou Pharmaceutical(SH:603456) HUAXI Securities·2025-04-13 14:22Investment Rating - The investment rating for the company is "Accumulate" [3][6]. Core Views - The company reported a revenue of 5.16 billion yuan for 2024, a year-on-year decrease of 6.57%, and a net profit attributable to shareholders of 606 million yuan, down 41.34% year-on-year [1][2]. - The decline in performance is attributed to intensified industry competition leading to price reductions and asset impairment provisions [2]. - Future growth is expected to be supported by a rich CDMO pipeline and strategic expansion into peptide and conjugate businesses, enhancing project penetration rates with key clients and acquiring new orders [2]. Financial Performance Summary - In 2024, the CDMO business generated 3.87 billion yuan, accounting for 75% of total revenue, with a year-on-year decline of 5.1% [5]. - The specialty API business saw a revenue of 1.16 billion yuan, down 8% year-on-year, with a gross margin of 20.1%, significantly lower than 32.9% in 2023 [5]. - The company has established a TIDES business unit focusing on peptide projects and has invested 145 million yuan to expand peptide production capacity [5]. Earnings Forecast and Valuation - Revenue forecasts for 2025-2027 have been adjusted to 5.685 billion yuan, 6.262 billion yuan, and 6.937 billion yuan respectively, with EPS estimates of 0.99 yuan, 1.07 yuan, and 1.21 yuan [3][8]. - The projected PE ratios for 2025, 2026, and 2027 are 12.73, 11.74, and 10.38 respectively [8].