GemPharmatech (SH:688046) Soochow Securities·2024-05-05 01:00Investment Rating - The report maintains a "Buy" rating for the company, indicating strong growth potential in the upcoming months [7][19]. Core Views - The company has demonstrated strong growth potential, supported by a completed domestic facility layout and significant overseas market opportunities. The domestic facility has a capacity of approximately 280,000 cages, representing a 40% increase, making it the only domestic model animal enterprise with a nationwide production layout. The overseas market is expected to continue its high growth trajectory, with demand remaining robust despite a downturn in 2023 [7][19]. - The company is recognized for having the most comprehensive mouse model offerings and continues to innovate with new products, which is expected to drive further growth in performance [7][19]. Financial Summary - In 2023, the company reported revenue of 622 million yuan, a year-on-year increase of 20.5%, while the net profit attributable to shareholders was 159 million yuan, a decrease of 3.49%. The first quarter of 2024 saw revenue of 157 million yuan, up 12.0%, and a net profit of 29.48 million yuan, down 5.1% [1][19]. - The revenue breakdown for 2023 includes 367 million yuan from commercialized mouse models (up 13.6%), 132 million yuan from functional efficacy (up 36.1%), and 79 million yuan from custom breeding (up 22.2%). The overseas revenue reached 93 million yuan, reflecting a 39.9% increase [13][19]. - The company’s projected revenue for 2024 is adjusted to 771 million yuan, with a net profit forecast of 181 million yuan, translating to a price-to-earnings ratio of 29 times [19].