APELOA(SZ:000739) KAIYUAN SECURITIES·2024-03-07 16:00Investment Rating - The investment rating for the company is "Buy" (maintained) [10]. Core Insights - The company achieved a revenue of 11.474 billion yuan in 2023, representing a year-on-year increase of 8.81%. The net profit attributable to shareholders was 1.055 billion yuan, up 6.69% year-on-year, while the net profit excluding non-recurring items increased by 22.73% to 1.026 billion yuan. The gross margin improved to 25.66%, up 1.76 percentage points, and the net margin was 9.2%, down 0.18 percentage points [10]. - The CDMO (Contract Development and Manufacturing Organization) business is rapidly growing, with revenue reaching 2.005 billion yuan, a 27.1% increase year-on-year, and a gross margin of 42.29%, up 1.27 percentage points. The number of CDMO projects has significantly increased, with 905 quoted projects (up 10% year-on-year) and 736 ongoing projects (up 40% year-on-year) [26]. Financial Performance Summary - In 2023, the revenue from the raw materials and intermediates business was 7.987 billion yuan, a 3.23% increase, with a gross margin of 17.56% (up 0.87 percentage points). The formulation segment achieved revenue of 1.249 billion yuan, a 15.69% increase, with a gross margin of 53.14% (up 1.01 percentage points) [4]. - The company has made significant investments in production capacity, including the completion of a new production line for product AH22081 and the expansion of the formulation workshop, which has been operational since July 2023 [4]. - The financial forecasts for 2024 to 2026 predict a net profit attributable to shareholders of 1.248 billion yuan, 1.486 billion yuan, and 1.732 billion yuan, respectively, with corresponding P/E ratios of 12.8, 10.7, and 9.2 times [10][12].