Chemexpress(SH:688131) ZHONGTAI SECURITIES·2024-02-25 16:00Investment Rating - The report maintains a "Buy" rating for the company, with a market price of 36.05 [8]. Core Views - The company reported a revenue of 1.879 billion yuan in 2023, representing a year-on-year growth of 38.36%. However, the net profit attributable to shareholders decreased by 37.45% to 121 million yuan [11]. - The rapid revenue growth in Q4 2023 was driven by significant order increases in the front-end business, while profit growth lagged due to rising production costs and increased asset impairment provisions [11]. - The company has a strong front-end business with a rich product portfolio and significant order volume, which is expected to drive sustained high growth [11]. - The back-end business, including generic drugs and innovative drug CDMO projects, is also expanding, with a total of 263 generic drug projects and 531 innovative drug projects under development as of mid-2023 [11]. - The report adjusts the profit forecast for 2023-2025, estimating revenues of 1.879 billion, 2.523 billion, and 3.328 billion yuan, with corresponding net profits of 121 million, 165 million, and 230 million yuan [11]. Summary by Sections Financial Performance - In 2023, the company achieved a revenue of 1.879 billion yuan, a growth rate of 38.36% year-on-year, while net profit fell to 121 million yuan, a decrease of 37.45% [11][20]. - The projected revenues for 2024 and 2025 are 2.523 billion and 3.328 billion yuan, respectively, with growth rates of 34.24% and 31.92% [20]. Business Development - The front-end business has shown significant advantages, with over 260,000 orders completed and 104,000 molecular types as of mid-2023, indicating strong growth potential [11]. - The back-end business is also robust, with 263 generic drug projects and 58 commercialized projects, alongside over 60 ADC projects initiated in the first half of 2023 [11]. Profitability Forecast - The report anticipates a decline in net profit for 2023, followed by a recovery in 2024 and 2025, with growth rates of 35.82% and 39.53% expected in the subsequent years [20]. - The adjusted P/E ratios for 2023-2025 are projected to be approximately 31.8, 23.4, and 16.8 times [11].