九洲药业（603456）：峰回路转，增长向上

Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of RMB 29.12 [1][7]. Core Views - The company has shown a positive growth trajectory in its revenue and profit, with a notable increase in the contribution from high-margin CDMO business [2][3]. - The company’s CDMO business achieved revenue of RMB 22.91 billion in the first half of 2025, reflecting a year-on-year growth of 16% [3]. - The company is expanding its new business capabilities, with significant progress in peptide and conjugated drug production, as well as small nucleic acid projects [4]. Summary by Sections Financial Performance - In the first half of 2025, the company reported revenue of RMB 28.71 billion, a year-on-year increase of 4%, and a net profit attributable to the parent company of RMB 5.26 billion, up 11% year-on-year [1]. - The second quarter of 2025 saw revenue of RMB 13.81 billion, with net profit increasing by 16% year-on-year [1]. CDMO Business - The CDMO business is a key growth driver, with a revenue contribution increasing from 71% in 2024 to 80% in the first half of 2025, leading to an improvement in gross margin from 35% to 37% [2]. - The company has a robust project pipeline, with 1,086 projects in clinical phases and 38 in commercialization as of the first half of 2025 [3]. New Business Development - The company has made strides in building capabilities for new business areas, including the expansion of facilities for peptide and conjugated drugs, and has onboarded over 20 new clients in the first half of 2025 [4]. Profit Forecast and Valuation - The forecast for net profit attributable to the parent company for 2025-2027 is RMB 9.14 billion, RMB 9.52 billion, and RMB 9.74 billion respectively, with corresponding EPS of RMB 1.03, RMB 1.07, and RMB 1.09 [5][10]. - The company is valued at RMB 259 billion using the SOTP method, with a target price of RMB 29.12 based on a total share count of 889 million [5][12].