PHARMARON(SZ:300759) Guotou Securities·2024-03-27 16:00Investment Rating - The investment rating for the company is "Buy - A" with a target price of 24.75 CNY for the next six months [6][11]. Core Views - The company achieved a revenue of 11.538 billion CNY in 2023, representing a year-on-year growth of 12.39%, and a net profit attributable to shareholders of 1.601 billion CNY, up 16.48% year-on-year [2][11]. - The steady growth in various business segments, including laboratory services, CMC, clinical research services, and large molecule and cell & gene therapy services, has contributed to the overall performance [2][3]. - The company is actively expanding into new business areas such as peptides, oligonucleotides, ADCs, and antibodies, which supports the stable growth of laboratory services [3]. - The CMC services are expected to grow rapidly due to the company's integrated business layout, with a significant increase in commercial projects from 15 in 2022 to 29 in 2023 [4]. - The clinical research services are also thriving, with ongoing clinical trial projects reaching 1,035 and site management projects exceeding 1,450 [5]. Summary by Sections Financial Performance - In 2023, the company reported a revenue of 11.538 billion CNY, a 12.39% increase from the previous year, and a net profit of 1.601 billion CNY, reflecting a 16.48% growth [2][12]. - The revenue breakdown includes laboratory services at 6.660 billion CNY (+9.38%), CMC at 2.711 billion CNY (+12.64%), clinical research services at 1.737 billion CNY (+24.66%), and large molecule and cell & gene therapy services at 0.425 billion CNY (+21.06%) [2][12]. Business Development - The company is diversifying its service offerings to include peptides, oligonucleotides, ADCs, and antibodies, which has helped maintain stable growth in laboratory services [3]. - The CMC service segment is benefiting from a strong client base, with approximately 85% of its revenue coming from existing clients in drug discovery services [4]. - The clinical research service segment is expanding rapidly, with a significant number of ongoing projects, indicating a robust market position [5]. Future Projections - The company expects net profits to reach 1.768 billion CNY in 2024, 1.980 billion CNY in 2025, and 2.208 billion CNY in 2026, with an estimated EPS of 0.99 CNY for 2024 [11][12].