Asymchem(SZ:002821) GF SECURITIES·2024-04-29 05:02Investment Rating - The report maintains a "Buy" rating for both A-shares and H-shares of the company [3]. Core Views - The company is advancing its small molecule CDMO (Contract Development and Manufacturing Organization) business, which is expected to rebalance overall profitability. In the first quarter, the company achieved total revenue of RMB 1.4 billion, a year-on-year decrease of 37.76%. Excluding the impact of large orders from the previous year, revenue grew by 15.21%. Revenue from clients in Europe and the US, after excluding last year's large orders, increased by 62.80%. The overall gross margin improved to 43.52%, up 5.49 percentage points from the previous quarter [2]. - The company has initiated a share buyback program, reflecting confidence in its future prospects while waiting for the industry to recover. The buyback plan involves repurchasing A-shares from the secondary market with a total fund of no less than RMB 600 million and not exceeding RMB 1.2 billion, with a maximum repurchase price of RMB 157 per share [2]. - Profit forecasts indicate that the company's net profit attributable to shareholders is expected to be RMB 1.299 billion, RMB 1.6 billion, and RMB 2.04 billion for the years 2024 to 2026, respectively. The corresponding EPS (Earnings Per Share) is projected to be RMB 3.52, RMB 4.33, and RMB 5.52, with P/E ratios of 23.03, 18.70, and 14.67 [2]. Summary by Sections Financial Performance - The company reported total revenue of RMB 1.4 billion in Q1, down 37.76% year-on-year, but up 15.21% when excluding last year's large orders. Revenue from multinational pharmaceutical companies was RMB 482 million, a 19.62% increase after adjustments, while revenue from small and medium-sized pharmaceutical companies was RMB 918 million, up 13.02% [2]. - Small molecule business revenue reached RMB 1.223 billion, with a year-on-year growth of 26.58% after excluding large orders. The gross margin for this segment was 47.34% [2]. Business Development - The company has confirmed 30 small molecule commercialization projects and has 148 projects in clinical stages, including 41 in Phase III [2]. - Emerging business revenue was RMB 176 million, down 29.30% year-on-year, with a gross margin of 17.30% [2]. Valuation - The report maintains the reasonable value for A-shares at RMB 87.91 per share and for H-shares at HKD 69.12 per share, both unchanged from previous assessments [2].