Core Insights - The company has shown significant recovery in net profit during the first three quarters of 2025, with a revenue of 4.72 billion yuan, representing an 8.25% year-on-year increase, and a non-recurring net profit of 300 million yuan, up 1504% year-on-year [1] - The company is expanding its mature pharmaceutical business while investing heavily in new development directions, including advancements in drug technology and services [2] - The agricultural protection market is beginning to recover, with the company establishing a global supply chain through its Malaysian base, which is expected to start production within 1 to 2 years [3] - The company is also investing in new energy products, with significant projects underway to enhance its production capacity in lithium-related products [3] Summary by Sections Financial Performance - In the first three quarters of 2025, the company achieved an operating income of 4.72 billion yuan, a year-on-year increase of 8.25% - The non-recurring net profit reached 300 million yuan, reflecting a substantial year-on-year growth of 1504% - The gross profit margin stood at 25.96%, an increase of 3.25 percentage points compared to the previous year [1] Pharmaceutical Business Development - The company is focusing on expanding its pharmaceutical product technology research and development, moving from traditional small molecule drugs to amino acids, peptides, PROTAC/ADC linkers, and oligonucleotides [2] - The team is enhancing early clinical project conversion for clients by providing diverse linker synthesis services necessary for developing ADC/PROTAC drugs [2] Agricultural Protection Market - The agricultural protection market is recovering from a period of excess inventory due to global supply chain disruptions from 2019 to 2022, with demand expected to rebound in the second half of 2024 [3] - The company is collaborating with multiple international agricultural/plant protection companies to drive CDMO business through technological innovation [3] - The Malaysian base is under construction and aims to support CDMO business for agricultural protection products during the patent period, with production expected to start in 1 to 2 years [3] New Energy Initiatives - The company is investing 650 million yuan in projects to produce 200,000 tons of electrolyte, 20,000 tons of LT612 (lithium hydroxide monohydrate), and other lithium-related products [3] - The planned production capacity for lithium hexafluorophosphate is set at 20,000 tons per year, while the capacity for lithium bis(fluorosulfonyl)imide is projected at 10,000 tons per year [3] - The new energy business has achieved revenue breakthroughs, primarily from sales of LiFSI and electrolyte products, while the lithium hexafluorophosphate project is still undergoing technical improvements [3]

Charles Zhuang 庄怀超 SFC CE: BTE209 微信: zhuangcharles; 电话: (852) 9748 7114; 28 Nov 2025 环球富盛理财有限公司 联化科技 Lianhe Chemical Technology (002250.SZ) 盈利能力修复，新能源板块打开未来成长空间 Profitability repair & New energy sector opens up future growth space 最新动态 ➢ 做大成熟医药业务，大力投入新方向的开发。2025 年以来，公司在医药产品技术研发方面持续发力，从传统小 分子药物拓展到氨基酸、多肽、PROTAC/ADC 连接子、寡核苷酸等。团队通过持续开发、加速赋能客户的早期 临床项目转化，为客户提供开发 ADC/PROTAC 药物所需的多样性 Linker 合成服务，并具备多肽，PEG 等类型 Linker 克级到百克级别的交付经验。同时，公司能够根据客户需求进行 Linker 的结构和合成路线的设计及优化。 这些新方向的尝试有望拓展公司医药 CDMO 业务的服务领域，帮助公司承接更多的项目。 ➢ 植保 ...

Group 1: Pharmaceutical Business Development - The company’s pharmaceutical business is rapidly developing, focusing on a major client strategy and CDMO business model, with partnerships established with several leading global pharmaceutical companies [1] - The pharmaceutical division has formed stable commercial relationships with a number of high-quality domestic and international clients, leading to an expansion of the business coverage and deepening cooperation [1] - Future growth in the pharmaceutical sector is anticipated as the company continues to promote products during clients' patent periods [1] Group 2: Research and Development Expansion - The company is expanding its R&D efforts into new areas, including small molecule CDMO, starting materials, GMP intermediates, and advanced raw materials [2] - New directions in R&D include amino acids, peptides, PROTAC/ADC linkers, and oligonucleotides, with a focus on providing diverse linker synthesis services for ADC/PROTAC drug development [2] - These initiatives are expected to broaden the service scope of the pharmaceutical CDMO business and enable the company to undertake more projects [2] Group 3: Key Product Updates - The company continues to provide advanced intermediates K amine for chlorantraniliprole under a long-term partnership with a client, with a stable pricing model based on cost-plus [3] - The company adheres to a long-term contract strategy, ensuring trust and integrity in client relationships [3] Group 4: New Energy Sector Outlook - The company primarily sells LiFSI and electrolyte products, with ongoing technical improvements in lithium hexafluorophosphate projects [4] - Revenue from the new energy business is expected to break through in 2025, with a focus on large client strategies and enhancing production capabilities [4] Group 5: Agricultural Protection Business - The agricultural protection industry is highly concentrated, with the company engaging in CDMO business driven by technological innovation and establishing long-term strategic partnerships with multiple international agricultural companies [6] - The company has multiple production bases in China and overseas, including a new base in Malaysia to meet supply chain needs [6] - The company aims to provide differentiated, one-stop supply chain solutions leveraging its comprehensive chemical supply chain in China and flexible production policies in the UK and Malaysia [6]

Group 1: New Energy Business Development - The company has focused on chemical synthesis since its establishment and is now entering the new energy sector, leveraging its competitive commercialization capabilities [1] - Current products in the new energy business include electrolytes, with plans for customer communication, project development, and quality system construction [1] - The company aims to achieve a breakthrough in new energy business revenue in 2025, focusing on large customer strategies, enhancing production capabilities, and strengthening quality management [1] Group 2: Pharmaceutical Business Growth - The pharmaceutical business is rapidly developing, primarily through a CDMO model, with partnerships established with several leading global pharmaceutical companies [2] - The company is actively expanding its client base and focusing on strategic, high-viscosity customers, which is expected to drive future growth [2] Group 3: Malaysia Base Development - The product planning for the Malaysia base is centered on crop protection products, with positive feedback from clients regarding the overseas base construction [3] - The Malaysia base is currently in the construction phase, primarily intended for the production of patented crop protection products [3] Group 4: Impact of Tariff Changes - Tariff policies have a limited impact on the company's overall operations, as the export business to the U.S. constitutes a small portion of total operations [4] - The company maintains proactive communication with clients regarding supply chain stability and tax optimization in response to tariff changes [4] Group 5: Capital Expenditure and Funding - Current capital expenditures are focused on the coastal and Malaysia bases, with a net cash flow from operating activities of approximately 900 million yuan in the first three quarters of 2025 [5] - The company aims to gradually reduce its debt-to-asset ratio to lower operational risks and ensure stable operations [5] Group 6: K Amine Product Update - The company continues to provide the advanced intermediate K Amine for chlorantraniliprole under a CDMO model, maintaining a long-term partnership with the client [6] - A long-term framework agreement has been signed for related advanced intermediates, with a pricing model based on cost-plus for stable processing fees [6]

Core Viewpoint - The company has reported strong financial performance in Q3 2025, with significant year-on-year growth in both revenue and net profit, indicating a positive outlook for its business segments [1]. Financial Performance - For the first three quarters of 2025, the company achieved a revenue of 4.718 billion yuan, representing a year-on-year increase of 8.25%. The net profit attributable to shareholders was 316 million yuan, up 871.78% year-on-year, while the non-recurring net profit reached 300 million yuan, reflecting a year-on-year increase of 1504.77% [1]. - In Q3 2025, the company reported a revenue of 1.569 billion yuan, which is a quarter-on-quarter decrease of 4.34%. The net profit attributable to shareholders was 92 million yuan, down 47.26% quarter-on-quarter, and the non-recurring net profit was 91 million yuan, down 43.06% quarter-on-quarter [1]. Development Trends - The price of lithium hexafluorophosphate has increased significantly, from 49,300 yuan per ton in July to 99,000 yuan per ton by October 27. Similarly, the price of lithium bis(fluorosulfonyl)imide (LIFSI) rose from 67,500 yuan per ton in mid-September to 72,000 yuan per ton [2]. - The company has a planned production capacity of 20,000 tons per year for lithium hexafluorophosphate and 10,000 tons per year for LIFSI. The previous low prices had limited the company's production capacity in the new energy chemical business, but the recent price increases are expected to improve profitability [2]. Industry Outlook - The agricultural and pharmaceutical sectors are expected to continue their upward trend. The company's major client, FMC, has consistently exceeded earnings expectations, and the agricultural chemical market is entering a new growth cycle as inventory levels normalize [3]. - The company has acquired a 20% stake in its subsidiary, JunTai Pharmaceutical, for 25 million yuan, which has a production capacity of 100 tons for a key intermediate in pharmaceuticals. The ongoing development of the company's pharmaceutical CDMO business is anticipated to yield positive results [3]. Profit Forecast and Valuation - The company maintains its net profit forecasts for 2025 and 2026 at 500 million yuan and 620 million yuan, respectively. The current stock price corresponds to a P/E ratio of 22.2x for 2025 and 17.8x for 2026 [4]. - The target price is set at 14.0 yuan, maintaining an "outperform industry" rating, which corresponds to a P/E ratio of 25.6x for 2025 and 20.5x for 2026, indicating a potential upside of 15.5% from the current stock price [4].

Core Viewpoint - The company reported a strong financial performance in Q3 2025, with significant revenue growth and a return to profitability, driven by high-value commercialization projects and cost reduction measures [1][2]. Financial Performance - For the first three quarters of 2025, the company achieved a revenue of 2.544 billion yuan, representing a year-on-year increase of 19.7%, and a net profit attributable to shareholders of 80 million yuan, marking a turnaround from losses [1]. - In Q3 2025 alone, the company generated revenue of 923 million yuan, up 19.4% year-on-year and 12.7% quarter-on-quarter, with a net profit of 53 million yuan, continuing the trend of profitability recovery [1]. - The gross margin for the first three quarters of 2025 was 28.9%, an increase of 5.6 percentage points year-on-year, with the overseas market gross margin around 40% and the domestic market gross margin at approximately 1% [2]. Business Development - The core business of small molecule CDMO showed steady growth, with revenue of 2.350 billion yuan in the first three quarters of 2025, a year-on-year increase of 19%, driven by the ramp-up of high-value projects [2]. - The overseas market contributed 1.805 billion yuan in revenue, up 17% year-on-year, while the Chinese market generated 739 million yuan, reflecting a 21% increase [2]. - New business segments are showing a clear path to reduced losses, with small molecule formulation CDMO revenue flat year-on-year, and gene and cell therapy revenue at 42.86 million yuan, a growth of about 7% [3]. Profitability Outlook - The company has adjusted its net profit forecasts for 2025 and 2026 upwards by 100.5% and 15.9% respectively, now projecting net profits of 140 million yuan and 270 million yuan [4]. - The target price has been raised by 7.1% to 30.00 yuan, indicating a potential upside of 17.1% from the current stock price, based on DCF valuation [4].

Core Insights - The company reported a revenue of 2.544 billion yuan for the first three quarters, marking a year-on-year growth of 19.72% [1] - The net profit attributable to shareholders reached 79.92 million yuan, and the net profit after deducting non-recurring gains and losses was 53.68 million yuan, both showing a turnaround from losses compared to the same period last year [1] - The net cash flow from operating activities was 375 million yuan, reflecting a significant year-on-year increase of 54.1% [1] Financial Performance - In Q3, the company achieved a revenue of 923 million yuan, with a year-on-year growth of 19.44% [1] - The net profit attributable to shareholders for Q3 was 52.86 million yuan, and the net profit after deducting non-recurring gains and losses was 47.26 million yuan, both indicating a recovery from losses compared to the previous year [1] - As of the end of Q3, total assets amounted to 8.581 billion yuan, and net assets attributable to shareholders were 5.335 billion yuan, indicating a more robust asset structure [1] Business Segments - The company has established a collaborative development framework involving small molecule API CDMO, small molecule formulation CDMO, gene and cell therapy CDMO, and new molecular businesses [2] - From January to September, the small molecule API CDMO business generated revenue of 2.350 billion yuan, reflecting a year-on-year growth of approximately 19% [2] - The new molecular business emerged as the largest growth driver, with revenue of approximately 46.27 million yuan, a staggering year-on-year increase of 255% [2] Market Performance - Revenue from overseas markets reached 1.805 billion yuan, showing a year-on-year growth of 17% [2] - Revenue from the Chinese market was 739 million yuan, with a year-on-year increase of 21% [2] - The overall gross margin for the company was approximately 29%, an increase of nearly 6 percentage points year-on-year [2] Profitability Trends - The gross margin for overseas markets was about 40%, up 5 percentage points year-on-year, while the domestic market gross margin was around 1% [2] - Excluding the impact of new businesses, the domestic market gross margin was approximately 18% [2] - The gross margin for Q3 improved by about 3 percentage points from Q2, reaching 31%, indicating a trend of improving profitability [2]

Core Insights - The company, Yabao Chemical, reported a total revenue of 662 million yuan for the first half of 2025, representing a year-on-year increase of 12.31% [1] - The net profit attributable to shareholders was -8.67 million yuan, showing an improvement of 83.33% compared to the previous year [1] - The gross margin increased by 13.31% to 19.26%, while the net margin improved significantly by 76.35% to -2.03% [1] Financial Performance - Total revenue for 2024 was 589 million yuan, which increased to 662 million yuan in 2025, marking a 12.31% growth [1] - The net profit attributable to shareholders improved from -52.01 million yuan in 2024 to -8.67 million yuan in 2025, an increase of 83.33% [1] - The company’s gross margin rose from 17.00% to 19.26%, while the net margin improved from -8.58% to -2.03% [1] - Total expenses (selling, administrative, and financial) amounted to 82.37 million yuan, accounting for 12.45% of revenue, a decrease of 32.78% year-on-year [1] Cash Flow and Debt Situation - The cash flow situation is concerning, with cash and cash equivalents to current liabilities ratio at 26.79% and the average operating cash flow over the last three years to current liabilities ratio at 6.47% [4] - The interest-bearing debt ratio has reached 30.88%, and the ratio of interest-bearing debt to the average operating cash flow over the last three years is 14.82% [4] Business Operations - Yabao Chemical's pharmaceutical business focuses on CDMO services, covering pharmaceutical intermediates and active pharmaceutical ingredients [5] - The company operates multiple production bases, including Taicang, Malta, and Shangyu, with a total capacity of 60 tons/year for the active pharmaceutical ingredient Levetiracetam at the Taicang base [5] - The company has over 100 acres of chemical land reserved at the Lanzhou and Shangyu bases for future capacity expansion and plans to develop intelligent and green factories [5]

Core Viewpoint - The company emphasizes its capabilities in innovative pharmaceutical intermediates and active pharmaceutical ingredients (APIs), focusing on reducing R&D cycles and production costs for clients [1] Group 1: Company Capabilities - The company specializes in innovative pharmaceutical intermediates and raw materials, aiming to facilitate the transition from laboratory to commercial production [1] - It possesses advanced chemical synthesis and engineering capabilities, along with modular R&D production and rapid scale-up abilities [1] - The company focuses on key technology areas such as continuous flow process optimization and biocatalysis, which enhance production efficiency and optimize cost structures [1] Group 2: Facilities and Certifications - The Taicang facility is the only domestic base with API production capabilities, adhering to GMP standards and focusing on core needs of major pharmaceutical clients [1] - The Malta facility has obtained FDA certification and CEP qualification, meeting EU GMP standards for intermediates, APIs, and formulations, thus facilitating clients' international business expansion [1]

Core Viewpoint - Zhejiang Jiuzhou Pharmaceutical Co., Ltd. reported a revenue increase of 3.86% year-on-year for the first half of 2025, reaching approximately 2.87 billion yuan, with a net profit attributable to shareholders of approximately 525.83 million yuan, reflecting a 10.70% increase compared to the previous year [5][6][18]. Financial Performance - The company achieved total revenue of 2,870,947,333.22 yuan in the first half of 2025, compared to 2,764,279,820.31 yuan in the same period last year, marking a 3.86% increase [3]. - The total profit for the period was 650,314,797.16 yuan, up 17.20% from 554,870,663.04 yuan in the previous year [3]. - The net profit attributable to shareholders was 525,831,348.24 yuan, an increase of 10.70% from 474,988,640.43 yuan [3]. - The net cash flow from operating activities increased significantly by 164.50%, reaching 845,148,144.61 yuan [3]. Business Overview - The company operates as a leading Contract Development and Manufacturing Organization (CDMO), providing comprehensive pharmaceutical development and manufacturing services, including small molecule drugs, peptide drugs, conjugated drugs, and oligonucleotide drugs [4][5]. - The global CDMO market has shown robust growth, with a compound annual growth rate (CAGR) of 39.9% in China from 2018 to 2023, and is projected to reach 208.4 billion yuan by 2028 [4][5]. - The company has established long-term partnerships with well-known pharmaceutical companies, enhancing its reputation as a trusted partner in the global innovative drug development sector [4][5]. Technological Advancements - The company has developed multiple technology platforms, including continuous flow technology, chiral catalysis, fluorine chemistry, and biocatalysis, which are essential for enhancing its R&D capabilities [6][10]. - The company has successfully expanded its peptide and conjugated drug platforms, providing services for complex compound synthesis and meeting international regulatory standards for green production [12][13]. - The company has applied for numerous patents, reflecting its commitment to innovation and maintaining a competitive edge in the pharmaceutical industry [10][12]. Market Position and Strategy - The company has focused on expanding its customer base and deepening relationships with major clients, resulting in a steady increase in project orders and revenue from commercialized projects [5][15]. - The company has been recognized with multiple awards, including being listed among the top 20 CDMO companies in China for 2025, highlighting its industry leadership and commitment to quality [5][15]. - The company is actively participating in international conferences and exhibitions to enhance its brand visibility and expand its market reach [15].