HitGen(SH:688222) Minsheng Securities·2025-08-29 12:29Investment Rating - The report maintains a "Recommended" rating for Chengdu Xian Dao (688222.SH) [5] Core Views - The company's revenue for H1 2025 reached 227 million yuan, a year-on-year increase of 16.59%, while the net profit attributable to shareholders was 50 million yuan, up 390.59% year-on-year [1] - The DEL business segment showed significant recovery, with revenue of 102 million yuan, a 40.45% increase year-on-year, driven by strong progress in customized libraries [3] - The AI initiatives continue to enhance the underlying platform, yielding phase results in drug discovery and optimization [4] Financial Performance - The gross margin for H1 2025 was 53.81%, an increase of 7.18 percentage points year-on-year, and the net profit margin was 22.04%, up 16.80 percentage points year-on-year [2] - R&D expenses for H1 2025 were 29 million yuan, a decrease of 6.28% year-on-year, reflecting a strategic resource allocation adjustment [2] - The company expects revenues of 515 million, 617 million, and 740 million yuan for 2025, 2026, and 2027 respectively, with corresponding net profits of 90 million, 107 million, and 131 million yuan [5][6] Segment Performance - The FBDD/SBDD segment generated revenue of 65 million yuan, a 4.15% increase year-on-year, mainly due to milestone revenue recognition from the UK subsidiary Vernalis [3] - The OBT technical report segment saw revenue decline to 28 million yuan, down 3.35% year-on-year, while the TPD segment's revenue decreased to 7 million yuan, down 8.67% year-on-year [3] Future Outlook - The company is expected to achieve a revenue growth rate of 20.6% in 2025, followed by 19.9% in the subsequent years [5] - The projected PE ratios for 2025, 2026, and 2027 are 115, 97, and 79 respectively, indicating a favorable valuation trend [6]