Investment Rating - The report maintains a "Neutral" rating for the company with a target price adjusted to HKD 1.50 [4][11]. Core Views - The company's 2023 performance was below expectations, with revenue increasing by only 3.8% year-on-year to USD 260 million, while gross profit declined by 12.1% to USD 78.39 million. Net profit attributable to shareholders fell significantly by 58.0% to USD 10.81 million [2][3]. - The report indicates that the company faces short-term challenges, leading to a downward revision of revenue forecasts for 2024 and 2025 by 15.3% and 18.9%, respectively. This is attributed to lower-than-expected new orders in the second half of 2023 and a slow recovery in global pharmaceutical financing [3][4]. - The management noted a decrease in demand for research outsourcing services due to reduced R&D spending by pharmaceutical companies, impacting the company's capacity utilization and profit margins [2][3]. Summary by Sections Financial Performance - In 2023, the company reported a revenue of USD 260 million, which was 6.4% lower than previous forecasts. The gross margin and net profit margin decreased by 5.4 percentage points and 6.1 percentage points, respectively, compared to the previous year [2][3]. - The backlog of orders at the end of 2023 was USD 340 million, showing a slight year-on-year increase of 0.1% [2]. Revenue and Profit Forecasts - The revenue forecasts for 2024 and 2025 have been revised downwards to USD 288.2 million and USD 320.4 million, reflecting a decrease of 15.3% and 18.9% from previous estimates [3][7]. - The net profit forecasts for 2024 and 2025 have also been adjusted downwards to USD 18.6 million and USD 23.6 million, representing decreases of 27.8% and 32.6% [3][7]. Valuation Metrics - The report provides a DCF model with a perpetual growth rate assumption adjusted to 3.0%, leading to a calculated equity value of HKD 3,149 million, translating to an intrinsic value of HKD 1.50 per share [7][9].
2023年业绩逊预期，短期内仍面对挑战