Soochow Securities·2024-03-19 16:00Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company achieved a revenue of 40.34 billion yuan in 2023, representing a year-on-year growth of 2.5%, and a net profit attributable to shareholders of 9.61 billion yuan, up 9.0% year-on-year, which is in line with expectations [2][3] - Excluding COVID-19 related small molecule business, the company maintained high growth in its regular business, with a 36.1% growth rate, and a significant 55.1% growth in D&M business [3] - The TIDES new molecular business generated revenue of 3.41 billion yuan, marking a 64.4% increase, with a backlog of orders up 226% [3] - The testing business also showed stable growth, with revenue reaching 6.54 billion yuan, a 14.4% increase, driven by laboratory analysis and testing services [4] Summary by Sections Financial Performance - Total revenue for 2023 was 40.34 billion yuan, with a year-on-year increase of 2.5% - Net profit attributable to shareholders was 9.61 billion yuan, reflecting a 9.0% year-on-year growth - Non-IFRS net profit reached 10.86 billion yuan, up 15.5% year-on-year [2] Business Segments - Chemical business revenue was 29.17 billion yuan, with a 1.1% increase; regular business growth was 36.1% when excluding COVID-19 related revenue - Testing business revenue was 6.54 billion yuan, with laboratory analysis and testing services contributing significantly [3][4] - Biological business revenue was 2.55 billion yuan, up 3.1%, with new molecular types contributing to growth [4] Market and Clientele - Revenue from the US region was 26.1 billion yuan, a 42% increase when excluding COVID-19 related revenue - The top 20 pharmaceutical clients saw a revenue increase of 44% year-on-year [4] Profitability and Valuation - The company’s P/E ratio for the latest diluted earnings per share is 15.51, with projected P/E ratios of 15, 14, and 12 for 2024-2026 respectively [2][8]