Group 1: R&D and Innovation - Northeast Pharmaceutical focuses on "small molecule innovative drugs + biological drugs" for significant cost reduction and efficiency improvement [2] - The company has developed over 10 cell therapy products targeting pancreatic cancer, colorectal cancer, gastric cancer, liver cancer, and glioma [3][4] - The TCR-T and CAR-T cell therapy products are part of a complete technology platform and product transformation system [3] Group 2: Core Business and Product Lines - Northeast Pharmaceutical is a major producer and exporter of chemical raw materials and formulations, with a comprehensive business covering chemical pharmaceuticals, medical commerce, and biopharmaceuticals [3][10] - The company has over 400 types of chemical raw materials and formulations, with products exported to over 100 countries and regions [3][11] - Key product categories include antibiotics, reproductive system products, and health products, among others [3] Group 3: Future Plans and Market Position - The company plans to submit one new product for IND approval and another for clinical trials in 2025 [5] - Northeast Pharmaceutical aims to leverage its integrated "raw materials + formulations" advantage to enhance R&D and accelerate product launches [10][11] - The company is positioned to capture market opportunities in the rapidly evolving biopharmaceutical sector, particularly in cell therapy [6][10] Group 4: Competitive Advantages - Northeast Pharmaceutical has established a unique TCR sequence discovery platform, enabling rapid development of TCR sequences for personalized treatment [7] - The company has a comprehensive TCR drug development platform that includes target discovery, sequence evaluation, and process development [7] - The firm has a strong clinical application capability, with multiple cell therapy products undergoing clinical research in top hospitals [9]

Investment Rating - The report maintains a "Buy" rating for the company [4] Core Insights - The company reported a revenue of $594 million for 2024, reflecting a year-over-year increase of 6.1%, and a significant net profit of approximately $2.96 billion, primarily due to the deconsolidation of its cell therapy business, which contributed $3.2 billion in earnings [1] - The life sciences segment achieved a revenue of $455 million in 2024, growing by 10.2% year-over-year, with an adjusted operating profit of $90 million, up 15.5% [2] - The CDMO business saw a revenue decline of 13.2% to $95 million in 2024, with an adjusted operating loss of $43 million, attributed to unfavorable market conditions and increased competition [3] - The synthetic biology segment experienced a revenue increase of 24.6% to $54 million, with adjusted operating profit remaining stable at approximately $2.1 million [3] - The company expects a revenue growth of 15%-20% in the CDMO business for 2025, driven by new project acquisitions and anticipated upfront payments from partners [3] Summary by Sections Financial Performance - The company achieved a total revenue of $594 million in 2024, with a significant turnaround in net profit to $2.96 billion from a loss of $95 million in 2023 [5] - The projected net profits for 2025 and 2026 are $248 million and $235 million, respectively, with an expected EPS of $0.12 and $0.11 [4][5] Business Segments - Life Sciences: Revenue of $455 million in 2024, with a focus on innovation and automation leading to improved operational efficiency [2] - CDMO: Revenue of $95 million in 2024, with a forecasted recovery in 2025 due to new project acquisitions [3] - Synthetic Biology: Revenue growth of 24.6% in 2024, driven by expanding customer base and market penetration [3] Valuation Metrics - The company’s current valuation is considered low, with projected PE ratios of 14, 15, and 7 for 2025, 2026, and 2027, respectively [4]

Investment Rating - The report maintains an "Outperform" rating for Genscript Biotech [2][4][6] Core Insights - The deconsolidation of Legend Biotech has led to a significant profit improvement for Genscript, with a profit from discontinued operations of approximately $3 billion, compared to a loss of about $518 million in the same period in 2023 [7][17] - The company expects a positive trend for its continuing business segments in 2025, with projected revenues of $938 million, representing a year-on-year growth of 58% [2][8] - The total equity valuation of Genscript is estimated at $6.296 billion, translating to a target price of HK$22.78 per share [6][17] Summary by Segment Life Sciences Segment - Expected revenue for 2025 is $523 million, with a year-on-year growth rate of 15% and an adjusted operating profit of $104 million [13][14] - The segment's revenue in 2024 was approximately $454.9 million, up by 10.2% year-on-year, with an adjusted gross profit of about $237.7 million [14][17] Biologics Development Services Segment - Projected Fee-for-Service revenue for 2025 is $113 million, up by 19% year-on-year [14][15] - The segment's revenue in 2024 was about $95 million, down by 13.2% year-on-year, but showed signs of recovery in the second half of 2024 [14][17] Industrial Synthetic Biology Products Segment - Expected revenue for 2025 is $67 million, with a year-on-year growth rate of 25% [15][16] - The segment's revenue in 2024 was approximately $53.7 million, up by 24.6% year-on-year [14][17] Legend Biotech - After the deconsolidation, the market capitalization of Legend Biotech was $6.8 billion, with Genscript holding a 47.51% stake valued at approximately $3.231 billion [16][17]

Investment Rating - The report maintains an "Outperform" rating for Genscript Biotech [2][4][6] Core Insights - The deconsolidation of Legend Biotech has led to a significant profit improvement for Genscript, with a profit from discontinued operations of approximately $3 billion, compared to a loss of about $518 million in the same period last year [7][17] - The continuing business segments are expected to show positive trends in 2025, with revenue from continuing operations projected at approximately $594.5 million, representing a year-on-year increase of 6.1% [3][14] - The total equity valuation of Genscript is estimated at $6.296 billion, translating to a target price of HK$22.78 per share [6][17] Summary by Segment Life Sciences Segment - Expected revenue for 2025 is $523 million, with a year-on-year growth rate of 15% and an adjusted operating profit of $104 million, also growing by 15% [13][14] - The segment's revenue in 2024 was approximately $454.9 million, up by 10.2% year-on-year, with an adjusted gross profit of about $237.7 million [3][14] Biologics Development Services Segment - Projected Fee-for-Service revenue for 2025 is $113 million, up by 19% year-on-year [14] - The segment's revenue in 2024 was about $95 million, down by 13.2% year-on-year, but showed a recovery with a growth rate of about 38% in the second half of 2024 [3][14] Industrial Synthetic Biology Products Segment - Expected revenue for 2025 is $67 million, with a year-on-year growth rate of 25% [14] - The segment's revenue in 2024 was approximately $53.7 million, up by 24.6% year-on-year, with an adjusted gross profit of about $22.6 million [3][14] Legend Biotech - Following the deconsolidation, the market capitalization of Legend Biotech was approximately $6.8 billion, with Genscript holding a 47.51% stake valued at about $3.231 billion [5][16]