交银国际每日晨报-20250819

Core Insights - The report highlights a strong recovery in the core business of King’s Ray Bio, with a significant increase in revenue and adjusted net profit for 1H25, leading to an upward revision of guidance for the life sciences segment [1][2] - The closing price of King’s Ray Bio is HKD 18.17, with a target price set at HKD 28.75, indicating a potential upside of 58.2% [1] Financial Performance - For 1H25, the company reported a revenue increase of 82% year-on-year to USD 519 million, and an adjusted net profit growth of 510% to USD 178 million [1] - The life sciences segment saw an 11% revenue growth with an adjusted gross margin of 51.0%, and the full-year revenue growth guidance for this segment has been raised to 13-15% [1] - The custom services revenue in the booming bio segment returned to double-digit growth, with 20 new antibody protein drug projects and 30 CGT projects acquired in 1H25 [1] Business Segments - The report details the performance of various business segments: - Life Sciences: Revenue growth of 11%, with a full-year growth guidance of 13-15% and a stable gross margin expected [1] - Booming Bio: Custom services revenue growth guidance maintained at 15-20%, with expectations for the first non-COVID BLA project in 2H25 [1] - Baisjie: Revenue growth of 8% with an adjusted gross margin of 40.4%, focusing on team building and early strain screening [1] Valuation and Ratings - The report maintains a "Buy" rating for King’s Ray Bio, with a slight upward adjustment of revenue forecasts for 2025-2027 by 1-5%, while lowering the net profit forecast for 2025 due to significant net losses [2] - The SOTP (Sum of the Parts) valuation model has been rolled over to 2026, with target valuation multiples for each business segment remaining unchanged [2]