Guotou Securities·2025-04-30 08:55Investment Rating - The report assigns a "Buy-A" investment rating to the company with a target price of 48.65 CNY for the next six months [6][18]. Core Views - The company experienced a temporary decline in performance in Q1 2025, with revenue and net profit decreasing by 5.79% and 29.61% year-on-year, respectively, due to intensified industry competition and a drop in average order prices [2][5]. - Despite the temporary setback, the company has shown a strong growth trend in new orders, with a net increase in contract value exceeding 2 billion CNY in Q1 2025, representing a 20% year-on-year growth [3][4]. - The company's global operational capabilities are improving, with a significant increase in overseas projects, reaching 233 clinical research projects by the end of 2024, a 20% increase year-on-year [4]. Financial Forecast and Valuation Analysis - The company is projected to achieve net profits of 12.02 billion CNY, 13.28 billion CNY, and 14.98 billion CNY for the years 2025 to 2027, reflecting year-on-year growth rates of 196.6%, 10.5%, and 12.8%, respectively [5][12]. - The expected earnings per share (EPS) for 2025 is 1.39 CNY, with a price-to-earnings (PE) ratio of 35 times, leading to the target price of 48.65 CNY [5][18]. - Revenue forecasts for 2025, 2026, and 2027 are 71.43 billion CNY, 78.70 billion CNY, and 88.28 billion CNY, with corresponding year-on-year growth rates of 8.17%, 10.18%, and 12.17% [12][20].