Chemexpress(SH:688131) EBSCN·2025-10-31 06:52Investment Rating - The report maintains a "Buy" rating for the company [5] Core Views - The company reported better-than-expected performance for Q3 2025, with revenue of 7.48 billion yuan, representing a year-over-year growth of 32.76%, and a net profit of 0.85 billion yuan, up 16.39% year-over-year [1] - The strong performance is attributed to high growth in the front-end business, which generated 5.4 billion yuan in revenue, a year-over-year increase of over 36% [1][2] - The company has improved efficiency and strictly controlled costs, contributing to the positive financial results [1] Summary by Sections Front-end Business - The front-end business, including tool compounds and biochemical reagents, serves as the primary growth engine, maintaining high revenue growth [2] - The molecular building blocks segment has seen a significant increase in customer and order numbers, marking it as a secondary growth engine [2] - As of June 2025, the company has a reserve of over 52,000 tool compounds and biochemical reagents, and approximately 95,000 molecular building blocks, creating a comprehensive compound library [2] Back-end Business - The back-end business, which includes APIs, intermediates, and formulations, has a strong order backlog exceeding 5.9 billion yuan, reflecting a year-over-year growth of 40.1% [3] - The company is enhancing its competitive edge in the XDC segment and has established a strategic layout across Shanghai, Ma'anshan, and Chongqing [3] Financial Forecast and Valuation - The company’s net profit forecasts for 2025 and 2026 have been adjusted to 2.88 billion yuan and 4.00 billion yuan, respectively, with a new forecast for 2027 set at 5.19 billion yuan [3] - The estimated EPS for 2025, 2026, and 2027 are 1.36 yuan, 1.89 yuan, and 2.45 yuan, respectively, with corresponding P/E ratios of 62, 45, and 35 [3]