LIANHE TECHNOLOGY(SZ:002250) GUOTAI HAITONG SECURITIES·2026-02-27 00:25Investment Rating - The report initiates coverage with a "Buy" rating and sets a target price of 24.00 CNY [5][11]. Core Insights - The company has shown significant growth in its pharmaceutical business, with enhanced R&D capabilities. The new energy sector and the overseas base in Malaysia are emerging as new growth drivers [2][11]. - The company is a leading player in fine chemicals, focusing on customized R&D and production services across various sectors, including plant protection, pharmaceuticals, and functional chemicals [11][13]. - The projected EPS for 2025-2027 is 0.44, 0.60, and 0.73 CNY, with growth rates of 281.4%, 37.5%, and 20.8% respectively [11][14]. Financial Summary - Total revenue is forecasted to decline from 6,442 million CNY in 2023 to 5,677 million CNY in 2024, before recovering to 6,408 million CNY in 2025, and reaching 8,826 million CNY by 2027 [4][12]. - Net profit (attributable to the parent) is expected to turn from a loss of 465 million CNY in 2023 to a profit of 103 million CNY in 2024, and further increase to 654 million CNY by 2027 [4][12]. - The company’s gross margin is projected to improve, with the pharmaceutical segment expected to maintain a gross margin of 43% from 2025 to 2027 [14][15]. Business Segments - The plant protection and intermediates segment is expected to generate revenues of 4,243 million CNY in 2023, declining to 3,590 million CNY in 2024, and then stabilizing around 3,859 million CNY by 2027 [15]. - The pharmaceutical intermediates segment is projected to grow from 1,482 million CNY in 2023 to 2,579 million CNY by 2027, with a gross margin of 43% [15]. - The functional chemicals segment is anticipated to see significant growth, with revenues expected to rise from 189 million CNY in 2023 to 2,019 million CNY by 2027, although it will initially experience negative gross margins [15]. Market Position - The company is positioned as a key strategic supplier in the plant protection CDMO sector, ranking among the top five companies in the industry and partnering with major global pharmaceutical firms [13][14]. - The CDMO industry is experiencing robust growth, with the Chinese market projected to reach 157.1 billion CNY by 2025, representing 19.6% of the global market share [13].