SNSW(SH:688117) SINOLINK SECURITIES·2024-04-23 05:30Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 30.68 RMB [14][20]. Core Insights - The company has adjusted its revenue forecasts for 2024 and 2025 upwards by 12% and 34% respectively, projecting revenues of 5.39 billion RMB and 6.87 billion RMB. The net profit attributable to the parent company is also revised up by 69% and 92% for the same years, reaching 1.2 billion RMB and 1.5 billion RMB respectively. The expected net profit for 2026 is 1.86 billion RMB, with year-on-year growth rates of 70%, 25%, and 24% for 2024, 2025, and 2026 respectively [20][28]. Financial Performance Summary - In 2023, the company reported a revenue of 4.35 billion RMB, a year-on-year increase of 9.93%. The net profit attributable to the parent company was 0.7 billion RMB, reflecting a growth of 9.08% [28]. - The first quarter of 2024 saw a revenue of 1.04 billion RMB, a 27.65% increase year-on-year, with net profits of 0.16 billion RMB, up 17.38% [28]. - The company has a comprehensive layout in the peptide sector, with significant growth potential in the global peptide market, projected to reach 79.5 billion USD in 2023 [28]. Business Development and R&D - The company has accelerated its production capacity expansion, with the main construction of new peptide production lines completed. The company also reported a 35.28% increase in R&D expenditure in 2023, amounting to 34.78 million RMB, which represents 8% of its revenue [28][30]. - The company has established a strong presence in the peptide CDMO sector, providing over 40 projects for new drug development and research institutions [28]. Market Position - The company has received production approvals for 17 self-developed peptide raw materials, with significant achievements in both domestic and international markets [28]. - The report highlights the company's first-mover advantage in the peptide field, supported by its comprehensive and integrated layout [28].