BOJI CRO(300404) 海通国际·2024-05-11 01:31Investment Rating - The report assigns an "Outperform" rating to the company, indicating that the stock's total return over the next 12-18 months is expected to exceed the return of its relevant broad market benchmark [28]. Core Insights - The company demonstrated steady revenue growth, with 2023 revenue reaching RMB 556 million, a 31.19% year-on-year increase, although net profit attributable to shareholders declined by 12.04% to RMB 24 million [30]. - New contracts worth approximately RMB 1.165 billion were signed, reflecting a 38.12% year-on-year increase, with a significant rise in traditional Chinese medicine R&D services contracts, which amounted to RMB 372 million, up 346.86% [30]. - The company aims to enhance its competitive position through various strategies, including talent acquisition, focus on specific indications, innovative trials, international services, and strategic partnerships [30]. Revenue Breakdown - Clinical research services revenue for 2023 was RMB 415 million, up 49.58% year-on-year, with new contracts totaling RMB 942 million, a 49.25% increase [30]. - Preclinical research services revenue reached RMB 78 million, a 6.19% year-on-year increase, with new contracts amounting to RMB 163 million, up 13.12% [30]. - Other consulting services generated revenue of RMB 49 million, reflecting a 19.06% year-on-year increase, although new contracts decreased by 12.51% to RMB 60 million [30]. Future Projections - Revenue forecasts for 2024, 2025, and 2026 are RMB 759 million, RMB 982 million, and RMB 1.261 billion, respectively, with net profits projected at RMB 75 million, RMB 102 million, and RMB 127 million [30]. - The company plans to continue developing clinical research services while expanding preclinical pharmacology and drug evaluation, and promoting technology transfer services [30].