HTSC·2025-04-29 04:20Investment Rating - The report maintains a "Buy" rating for the company [7][8] Core Views - The company reported a significant revenue growth of 20.96% year-over-year (yoy) in 1Q25, reaching 9.655 billion RMB, with a net profit increase of 89.06% yoy to 3.672 billion RMB [1] - The company expects a revenue growth acceleration in 2025-2026, driven by a strong order backlog and the performance of its TIDES business [1][2] - The TIDES segment showed remarkable growth, with a revenue increase of 187.6% yoy in 1Q25, contributing to the overall positive outlook for the company's performance [3] Summary by Sections Financial Performance - In 1Q25, the company achieved a revenue of 9.655 billion RMB, with a net profit of 3.672 billion RMB, and an adjusted non-IFRS net profit of 2.68 billion RMB, reflecting a 40.0% yoy increase [1] - The company’s order backlog reached 52.33 billion RMB in 1Q25, representing a 47.1% yoy increase [2] Business Segments - WuXi Chemistry's revenue in 1Q25 was 7.39 billion RMB, up 32.9% yoy, with a non-IFRS gross margin of 47.5% [3] - The TIDES business saw a significant increase in orders, with a backlog growth of 105.5% yoy in 1Q25 [3] Profitability and Valuation - The report forecasts net profits of 11.794 billion RMB for 2025, with a projected growth of 24.80% yoy [5] - The company’s valuation is based on a sum-of-the-parts (SOTP) approach, estimating a fair value of 269.44 billion RMB for A-shares and 278.28 billion HKD for H-shares [12]