Huajing Securities·2025-10-31 10:37Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 79.25, representing a potential upside of 33% from the current price of RMB 59.48 [1][2]. Core Insights - The company has shown resilience in its financial performance, with a significant increase in net profit driven by non-recurring gains, despite a slight decline in revenue [6][9]. - The clinical CRO industry is undergoing structural adjustments, impacting the company's revenue from clinical trial technology services, which saw a 10.2% year-on-year decline [7]. - Effective cost control measures have helped mitigate the impact of industry fluctuations, with the company managing to maintain operational efficiency [8]. Financial Performance Summary - For 2025, the company is projected to achieve revenue of RMB 7,310 million, with a net profit of RMB 1,353 million and an EPS of RMB 1.56 [9][11]. - The company's gross profit margin is expected to recover, with projections indicating a rise to 35% by 2026 [13]. - The report highlights a significant increase in operating cash flow, which reached RMB 2,048 million in 2025, reflecting a year-on-year growth of 87% [13].