GemPharmatech (SH:688046) Guoxin Securities·2025-08-25 13:29Investment Rating - The investment rating for the company is "Outperform the Market" [5][17]. Core Views - The company achieved a revenue of 375 million yuan in the first half of 2025, representing a year-on-year growth of 10.1%, driven by the release of new domestic capacity and expansion into overseas markets. However, the net profit attributable to the parent company was 71 million yuan, down 7.1% year-on-year, primarily due to a decrease in government subsidies compared to the same period last year [1][8]. - The gross margin for the first half of 2025 was 64.3%, a slight decrease of 0.2 percentage points year-on-year, while the net profit margin was 18.9%, down 3.5 percentage points year-on-year. The overall expense ratio improved to 40.4%, down 2.3 percentage points year-on-year [2][14]. - The company has completed its domestic facility layout with seven large production facilities in China, achieving full production capacity. The new facility in San Diego, USA, was launched in June 2025, enhancing the company's global service capabilities [2][3]. Financial Performance Summary - For the first half of 2025, the company reported a revenue of 375 million yuan, with a quarterly breakdown of 171 million yuan in Q1 and 204 million yuan in Q2, showing year-on-year growth of 8.8% and 11.3%, respectively [1][8]. - The net profit for Q1 was 30 million yuan, and for Q2, it was 41 million yuan, with Q2 showing a quarter-on-quarter increase of 36.5% [1][8]. - The company expects net profits of 132 million yuan, 166 million yuan, and 188 million yuan for the years 2025, 2026, and 2027, respectively, with corresponding price-to-earnings ratios of 58x, 46x, and 41x [3][17]. Regional Performance - In the first half of 2025, the company generated overseas market revenue of 67.12 million yuan, a year-on-year increase of 8%, accounting for 17.9% of total revenue. Over 70% of overseas revenue came from industrial clients [1][8].