Investment Rating - The investment rating for the company is "Buy" (maintained) [1][5] Core Views - The company achieved a revenue of 17.03 billion CNY in 2023, representing a year-on-year growth of 11.6%. Non-COVID project revenue was 16.51 billion CNY, showing a significant increase of 37.7% year-on-year. However, the net profit attributable to shareholders decreased by 23.1% to 3.4 billion CNY, while the adjusted net profit fell by 4.6% to 4.7 billion CNY [2][3] Summary by Sections Revenue Growth - Non-COVID revenue growth was robust, with a total of 16.51 billion CNY, up 37.7% year-on-year. COVID-related revenue was 0.53 billion CNY. Revenue from IND preclinical projects grew by 9.2% to 5.4 billion CNY, early clinical development revenue increased by 12.7% to 3.62 billion CNY, and late-stage clinical and commercial production revenue rose by 12.8% to 7.73 billion CNY. Notably, non-COVID Phase III and commercial revenue increased by 101.7% year-on-year. As of the end of 2023, the company had a total of 698 projects, with a backlog of 20.592 billion USD in unfulfilled orders, ensuring sustainable growth [2][3] Capacity Expansion - The company is advancing its global dual-plant strategy with new production capacities coming online. The Singapore integrated CRDMO center is under construction with a planned capacity of 120,000 liters. The Ireland MFG6 has completed its first PPQ production, and MFG7 has successfully produced 16,000 liters, with five PPQ projects expected in 2024. The German MFG19 will expand its raw material capacity to 24,000 liters, and the US MFG11 will increase its capacity to 36,000 liters, expected to be operational by 2025. The Hebei MFG8 has completed six batches of production in 2023, with the first PPQ expected in 2024 [3] Profit Forecast and Valuation - The company is projected to achieve revenues of 17.91 billion CNY, 20.83 billion CNY, and 24.16 billion CNY for 2024, 2025, and 2026, respectively, with growth rates of 5%, 16%, and 16%. The net profit attributable to shareholders is expected to be 3.61 billion CNY, 4.32 billion CNY, and 5.02 billion CNY for the same years, with growth rates of 6%, 20%, and 16%. The corresponding PE ratios are estimated at 15.6x, 13.0x, and 11.2x [3][6]
2023年报点评：常规业务稳健增长，产能建设持续推进