GemPharmatech (SH:688046) Ping An Securities·2025-08-25 06:35Investment Rating - The report maintains a "Recommendation" rating for the company [7][11] Core Views - The company achieved a revenue of 375 million yuan in the first half of 2025, representing a year-over-year increase of 10.11%, while the net profit attributable to shareholders decreased by 7.12% to 71 million yuan [3] - The company is expanding its overseas market presence, with overseas revenue reaching 67 million yuan in the first half of 2025, primarily through self-built sales channels and a dedicated business development team [6] - The domestic market remains stable, with domestic revenue of 308 million yuan in the first half of 2025 and a steady increase in customer acquisition [6] Financial Summary - The company forecasts revenue growth from 622 million yuan in 2023 to 1.108 billion yuan in 2027, with a compound annual growth rate (CAGR) of approximately 18% [5] - Net profit is projected to increase from 159 million yuan in 2023 to 197 million yuan in 2027, with a notable recovery expected in 2025 [5][9] - The gross margin is expected to stabilize around 62-63% over the forecast period, indicating strong cost management [5][9] Performance Metrics - The company reported a gross margin of 65.30% in Q2 2025, an increase of 2.03 percentage points year-over-year [6] - The return on equity (ROE) is projected to improve from 5.1% in 2024 to 7.5% in 2027, reflecting enhanced profitability [9] - The price-to-earnings (P/E) ratio is expected to decrease from 69.5 in 2024 to 38.7 in 2027, indicating a potential increase in valuation attractiveness [9]