Sun-Novo(SH:688621) Minsheng Securities·2024-04-28 00:02Investment Rating - The report maintains a "Buy" rating for the company, with expectations of significant revenue growth starting from Q2 2024 [6]. Core Insights - The company achieved a revenue of 932 million yuan in 2023, representing a year-on-year growth of 37.76%. The net profit attributable to shareholders was 185 million yuan, up 18.08% year-on-year. In Q1 2024, the company reported a revenue of 252 million yuan, a growth of 8.53%, and a net profit of 73 million yuan, which is a substantial increase of 51.77% year-on-year [6]. - The company is driven by dual engines of pharmaceutical research and clinical services, continuously expanding its diversified business areas. The pharmaceutical research segment generated 569 million yuan in revenue in 2023, with a gross margin of 67.41%. The clinical trial and bioanalysis segment saw a revenue increase of 54.54%, reaching 362 million yuan, with a gross margin of 39.72% [6]. - The company has a robust pipeline of self-developed projects, with over 100 new projects initiated in 2023 and a total of more than 350 projects. The company has provided CRO services to over 800 clients, with a significant increase in new orders and a growing backlog of orders [6]. Financial Projections - Revenue projections for 2024, 2025, and 2026 are 1.244 billion yuan, 1.646 billion yuan, and 2.161 billion yuan, respectively, with growth rates of 33.4%, 32.4%, and 31.2% [6]. - The net profit attributable to shareholders is expected to be 250 million yuan, 333 million yuan, and 440 million yuan for the years 2024, 2025, and 2026, respectively [6]. - The report indicates a decrease in the price-to-earnings (PE) ratio from 25 in 2024 to 14 in 2026, suggesting an attractive valuation as earnings grow [6].