2025-05-06 02:27Investment Rating - The investment rating for Pharmaron is Equal-weight [4] Core Insights - The industry view is considered Attractive, with a price target set at Rmb27.40, indicating a 3% upside from the current price of Rmb26.61 [4] - In 1Q25, Pharmaron reported revenue of Rmb3,099 million, reflecting a 16% year-over-year growth, aligning with the 2025 guidance of 10-15% growth [7] - The revenue streams from North America, EU, and China showed year-over-year growth of 16.8%, 26.6%, and 13.1%, respectively, contributing approximately 65%, 18%, and 15% to total revenue [2] - The customer base saw revenue from the top 20 pharmaceutical customers grow by 29% year-over-year, while other customers grew by 14% [2] - Adjusted non-IFRS net profit for 1Q25 was Rmb349 million, a 3.1% increase year-over-year, with softer growth attributed to depreciation and amortization costs from biologics capacity launch [7] Summary by Sections Financial Performance - 1Q25 revenue was Rmb3,099 million, up 16% year-over-year, consistent with the guidance for 2025 [7] - Net operating cash flow increased by 14.4% to Rmb853 million, with capital expenditures of Rmb556 million, up 11.4% year-over-year [2] Customer and Market Dynamics - Revenue from the top 20 pharma customers increased by 29% year-over-year, while other customers saw a 14% growth [2] - New order growth for both Lab services and CMC was over 10%, although it decelerated from over 20% in 2024 due to a higher order base in 1Q24 [7] Valuation Metrics - The company has a market capitalization of Rmb29,328.6 million and an enterprise value of Rmb33,234.4 million [4] - The projected EPS for the fiscal years ending in 2024, 2025, and 2026 are Rmb0.97, Rmb1.26, and Rmb1.00, respectively [4]