Porton(SZ:300363) Xinda Securities·2025-08-24 13:02Investment Rating - The report assigns a "Buy" rating for the stock, indicating a strong performance relative to the benchmark index [15]. Core Views - The company has demonstrated a significant recovery in revenue growth and has turned profitable, with a notable increase in both revenue and net profit in the first half of 2025 [2][3]. - The small molecule API business remains a core strength, showing robust growth and profitability, while emerging businesses are expected to gradually turn profitable [4][6]. Summary by Sections Financial Performance - In H1 2025, the company achieved revenue of 1.621 billion yuan, a year-on-year increase of 19.88%, and a net profit of 27.06 million yuan, up 115.91% [1]. - The operating cash flow for H1 2025 was 250 million yuan, reflecting a growth of 40.83% [1]. - The company’s overall gross margin improved to approximately 28% in H1 2025, up about 9 percentage points year-on-year [3]. Business Segments - The small molecule API segment generated revenue of 1.500 billion yuan in H1 2025, growing approximately 20% year-on-year, with clinical early-stage business revenue increasing by about 35% [2]. - Emerging businesses reported revenue of 115 million yuan, a year-on-year increase of about 22%, with gene cell therapy business revenue growing by approximately 71% [2]. Market Performance - The company’s revenue from the Chinese market in H1 2025 was 468 million yuan, a year-on-year increase of about 12%, while overseas revenue reached 1.153 billion yuan, growing approximately 23% [2]. - The North American market contributed 562 million yuan, up 33% year-on-year, and the European market contributed 509 million yuan, up 35% [2]. Profitability Outlook - The report forecasts that the company will achieve revenues of 3.629 billion yuan, 4.285 billion yuan, and 4.991 billion yuan for the years 2025, 2026, and 2027, respectively [8]. - Expected net profits for the same years are projected to be 69 million yuan, 208 million yuan, and 363 million yuan, indicating a strong recovery trajectory [8].