GENSCRIPT BIO(HK:01548) Western Securities·2025-08-22 05:46Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected investment return that will outperform the market benchmark by over 20% in the next 6-12 months [6][11]. Core Insights - The company achieved a revenue of $519 million in the first half of 2025, representing an increase of 81.9%. The gross profit was approximately $320 million, up 140.1%, and the adjusted net profit was about $178 million, reflecting a significant increase of 509.6%. The net loss was reduced to $24.5 million compared to a net loss of $216 million in the same period of 2024 [1][6]. Summary by Sections Financial Performance - In H1 2025, the life sciences services and products generated approximately $248 million in revenue, a growth of 11.3%, with an adjusted gross profit of $126 million, up 5.3%. The adjusted operating profit was about $46.35 million, down 3.2% [2]. - The CDMO segment reported revenue of approximately $247 million, a remarkable increase of 511.1%, with an adjusted operating profit of $150 million, compared to a loss of $18.88 million in H1 2024. This growth was driven by significant licensing revenue and double-digit growth in regular income [2]. - The company secured 20 new CDMO projects for antibody protein drugs, with over 50% from global clients, and 30 new CDMO projects in CGT, including one CAR-T project [2]. Revenue and Profit Forecast - The company forecasts revenues of $927 million, $803 million, and $905 million for 2025, 2026, and 2027, respectively, with growth rates of 56.0%, -13.4%, and 12.6% [3][4]. - The adjusted net profit is expected to be $84 million in 2025, with a significant recovery projected in subsequent years [4]. Key Financial Metrics - The company reported a gross margin of 48.8% in 2023, expected to rise to 56.8% in 2025, and a projected return on equity (ROE) of 1.9% in 2025, improving to 6.4% by 2027 [10]. - The earnings per share (EPS) is projected to be $0.04 in 2025, with a price-to-earnings (P/E) ratio of 472.05 [4][10].