BOHAI SECURITIES·2026-03-19 07:39Investment Rating - The report assigns an "Accumulate" rating for the company [10]. Core Insights - The company is a leading, technology-driven CDMO service provider with a strong foundation in small molecule CDMO and is exploring emerging businesses. It has established strong collaborative ties with multiple multinational corporations (MNCs) [20][21]. - The company has a stable shareholding structure and an experienced management team, which has implemented a restricted stock incentive plan to deeply bind core employees [23][28]. - As the impact of large orders gradually diminishes, the company's revenue and profit are expected to return to growth in the first three quarters of 2025 [31]. Summary by Relevant Sections Company Overview - The company provides one-stop services for over 1,100 clients globally, accelerating the clinical research and commercialization of innovative drugs. It is ranked among the top CDMO companies worldwide and is the largest commercial-stage chemical drug CDMO in China [20][21]. - The company has established R&D and production bases in multiple countries, including China, the USA, and the UK, covering various business areas such as chemical small molecules, TIDES, biopharmaceuticals, and formulation [20][21]. Small Molecule CDMO - The global small molecule CMO/CDMO industry is accelerating, with a market size projected to grow from USD 23.5 billion in 2015 to USD 52.1 billion by 2024, reflecting a CAGR of 9.2% [46]. - The company has been deeply engaged in the small molecule CDMO sector for over 20 years, providing comprehensive services throughout the drug development lifecycle [49]. - Excluding the impact of large orders, the company's small molecule CDMO revenue has been steadily increasing, with a CAGR of 15.0% from 2021 to 2024 [50]. Emerging Businesses - The company is actively expanding into emerging businesses, creating a one-stop custom service platform for innovative drugs. This includes growth in areas such as peptide and oligonucleotide CDMO, with significant market potential [8][7]. - The company has established a robust pipeline in the peptide sector, driven by rapid growth in the weight loss drug market, and is focusing on advancing its oligonucleotide CDMO capabilities [8][7]. Financial Performance and Forecast - The company expects EPS of RMB 3.15, 3.65, and 4.28 for 2025, 2026, and 2027, respectively, with a PE ratio of 27.27 for 2026 [10]. - The company's revenue is projected to recover, with a forecasted revenue of RMB 6.61 billion in 2025, reflecting a 13.9% increase from the previous year [12].