PHARMARON(300759) KAIYUAN SECURITIES·2024-04-29 10:38Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The company is experiencing short-term pressure on performance in Q1 2024, with revenue of 2.671 billion yuan, a year-on-year decline of 1.95%, and a net profit attributable to shareholders of 231 million yuan, down 33.80% year-on-year. However, the expansion of new business is expected to open up growth opportunities [5][6] - The company maintains its long-term growth outlook, with profit forecasts for 2024-2026 set at 1.789 billion, 2.019 billion, and 2.425 billion yuan respectively, and EPS projected at 1.00, 1.13, and 1.36 yuan [5][6] Summary by Sections Financial Performance - In Q1 2024, the company reported revenue of 2.671 billion yuan, a decrease of 1.95% year-on-year, and a net profit of 231 million yuan, down 33.80% year-on-year. The adjusted net profit (Non-IFRS) was 339 million yuan, a decline of 22.70% year-on-year. The decline in revenue is attributed to increased operating costs and expenses [5] - The company added over 800 new clients in 2023, contributing approximately 859 million yuan to revenue, indicating ongoing growth from new customer acquisition [5] Business Segments - The laboratory services and CMC (Chemistry, Manufacturing, and Controls) segments generated revenues of 1.605 billion and 582 million yuan respectively in Q1 2024, both showing a decline of around 2.92% and 2.70% year-on-year. The laboratory services remain the core business, participating in 764 drug discovery projects in 2023, a 17% increase from 2022 [6] - Clinical research services achieved revenue of 392 million yuan in 2023, reflecting a year-on-year growth of 4.60%. The company has 1,035 clinical CRO projects and 1,450 SMO projects, indicating a transition to high-quality development in this area [7] Future Outlook - The company expects to enhance its service capabilities with the gradual launch of the Ningbo Third Park in 2024, which will improve its animal testing services [6] - The long-term profit forecasts remain unchanged, with expected net profits of 1.789 billion, 2.019 billion, and 2.425 billion yuan for 2024, 2025, and 2026 respectively, alongside a decreasing P/E ratio from 19.1 to 14.1 over the same period [5][8]