KAIYUAN SECURITIES·2024-03-19 16:00Investment Rating - The investment rating for the company is "Buy" (maintained) [2][4] Core Views - The company's regular business is developing steadily, with strong growth in emerging businesses such as TIDES. In 2023, the company achieved revenue of 40.34 billion yuan, a year-on-year increase of 2.5%, and a 25.6% increase when excluding COVID-19 commercialization projects. The net profit attributable to the parent company was 9.61 billion yuan, up 9.0% year-on-year [4][5] - The company has adjusted its profit forecast for 2024-2025 due to a slowdown in industry demand, now expecting net profits of 10.40 billion yuan, 11.30 billion yuan, and 12.86 billion yuan for 2024, 2025, and 2026 respectively [4][5] Financial Performance Summary - In Q4 2023, the company reported revenue of 10.80 billion yuan, a decline of 1.5% year-on-year, while the net profit attributable to the parent company was 1.53 billion yuan, an increase of 6.6% year-on-year [4] - The company's chemical business generated revenue of 29.17 billion yuan in 2023, a growth of 1.1%, and a 36.1% increase when excluding COVID-19 projects. The TIDES business revenue reached 3.41 billion yuan, growing 64.4% year-on-year [5] - The company has a strong order backlog, with non-COVID orders growing nearly 18% year-on-year [4][5] Business Development - The company is proactively expanding its oligonucleotide and peptide businesses, with TIDES orders increasing by 226% year-on-year as of December 2023. New production capacity for 32,000L peptides was put into operation in January 2024 [5] - The company has laid out a forward-looking strategy in the CGT business, assisting multiple CGT projects in submitting BLA, and has achieved revenue of 1.31 billion yuan in this segment in 2023 [6] Financial Projections - The company expects earnings per share (EPS) of 3.55 yuan, 3.85 yuan, and 4.38 yuan for 2024, 2025, and 2026 respectively, with corresponding price-to-earnings (P/E) ratios of 14.2, 13.1, and 11.5 [4][7] - The total market capitalization of the company is approximately 1476.28 billion yuan, with a circulating market capitalization of 1281.42 billion yuan [3]