Group 1: New Materials Industry - The rare earth magnetic materials industry rebounded by 2.6% last week, outperforming the benchmark by 0.96 percentage points, with the industry valuation (TTM P/E) rising to 71.79x, currently at 85.5% of its historical percentile [4] - Last week, the prices of rare earth concentrates generally rebounded, with praseodymium and neodymium prices continuing to rise, dysprosium prices declining, and terbium prices weakening [5] - The price of sintered NdFeB (N35) increased by 3.64% last week, while H35 rose by 2.41%, supported by strong demand from downstream orders [7] - The supply side of the rare earth sector is generally tight, with some separation enterprises experiencing reduced operating rates due to maintenance or raw material issues, leading to a tight supply of oxides [8] - The overall market sentiment is characterized by a standoff, but the supply side is expected to decrease while the demand side shows a steady upward trend, indicating that rare earth prices are likely to remain stable with a slight upward bias [8] Group 2: Medical Services Industry - The report highlights that the company is a leading CDMO (Contract Development and Manufacturing Organization) driven by innovation, with revenue growing from 2.017 billion yuan in 2019 to 5.161 billion yuan in 2024, reflecting a CAGR of 20.67% [11] - The revenue from contract custom business has been increasing, with its share rising from 37.55% in 2019 to 75.00% in 2024, indicating a strong focus on this segment [12] - The global CDMO market has maintained a high level of prosperity, with the market size growing from $44.6 billion in 2018 to $79.7 billion in 2023, and is expected to reach $168.4 billion and $338.5 billion by 2028 and 2030, respectively [14] - The company is actively expanding its project pipeline, particularly in peptide and conjugated nucleic acid technologies, which are expected to drive future growth [15] - The company is projected to achieve revenues of 5.670 billion, 6.278 billion, and 6.957 billion yuan from 2025 to 2027, with corresponding net profits of 930 million, 1.031 billion, and 1.147 billion yuan, indicating a positive long-term outlook [16]

Core Insights - The company is an industry-leading CDMO driven by innovation, providing comprehensive pharmaceutical R&D and manufacturing services, with a focus on small molecules, peptides, conjugates, and small nucleic acids [1][4] - The company's revenue has grown from 2.017 billion in 2019 to an expected 5.161 billion in 2024, with a CAGR of 20.67%, and a revenue of 4.160 billion in Q1-Q3 2025, representing a year-on-year growth of 4.92% [1] - The company's net profit attributable to shareholders increased from 238 million in 2019 to 1.033 billion in 2023, with a projected net profit of 606 million in 2024, a decline of 41.34% due to non-recurring losses, and a net profit of 748 million in Q1-Q3 2025, a year-on-year increase of 18.51% [1] Business Segmentation - The revenue share from contract customization services has increased significantly, from 37.55% in 2019 to 75.00% in 2024, indicating a clear strategic focus on innovative drug CDMO services [2] - The gross margin for contract customization services in 2024 was 38.38%, with varying margins for different drug categories, such as 35.58% for central nervous system drugs and -5.74% for anti-infective products [2] - The company's foreign revenue reached 4.025 billion in 2024, accounting for 79.12% of total revenue, highlighting a growing international presence [2] Industry Outlook - The global pharmaceutical CDMO market has shown robust growth, with revenues increasing from 7.57 billion in 2019 to an expected 38.71 billion in 2024, driven by rising demand for innovative drugs and outsourcing by pharmaceutical companies [3] - The global CDMO market size grew from 44.6 billion USD in 2018 to 79.7 billion USD in 2023, with a CAGR of 12.3%, and is projected to reach 168.4 billion USD by 2028 and 338.5 billion USD by 2030 [3] - The company is well-positioned to benefit from the growth of the global CDMO industry due to its focus on innovative drug development [3] Technological Advancements - The company has developed a rich pipeline of CDMO projects, with advancements in technologies such as continuous flow, chiral catalysis, fluorochemistry, biocatalysis, and solid-state research [4] - The peptide department is expanding its commercial capacity to 800 kg/year, enhancing the delivery capability for peptide products [4] - The company is also establishing a commercial capacity for small nucleic acids, with R&D platforms set up domestically and internationally [4] Investment Outlook - The company is expected to achieve revenues of 5.670 billion, 6.278 billion, and 6.957 billion from 2025 to 2027, with net profits of 930 million, 1.031 billion, and 1.147 billion respectively, indicating a positive long-term growth outlook [5] - The projected EPS for the same period is 1.05, 1.16, and 1.29, reflecting confidence in the company's future performance [5]

Investment Rating - The report assigns a "Buy" rating for the company, indicating a positive outlook for future performance [6][7]. Core Insights - The company is positioned as an innovative leader in the CDMO (Contract Development and Manufacturing Organization) sector, focusing on providing customized R&D and manufacturing services for pharmaceutical and biotech companies globally. The company's revenue has shown a compound annual growth rate (CAGR) of 20.67% from 2019 to 2024, with a projected revenue of 51.61 billion yuan in 2024 [1][3]. - The company's contract manufacturing revenue has significantly increased, accounting for 75% of total revenue in 2024, with international revenue making up 79.12% of total sales [2][3]. - The global CDMO market is experiencing robust growth, with an expected market size of $168.4 billion by 2028 and $338.5 billion by 2030, which the company is well-positioned to benefit from [3][4]. Summary by Sections Financial Performance - The company's revenue increased from 20.17 billion yuan in 2019 to 51.61 billion yuan in 2024, with a net profit growth from 2.38 billion yuan in 2019 to 10.33 billion yuan in 2023. However, net profit in 2024 was impacted by non-recurring losses, dropping to 6.06 billion yuan, a decrease of 41.34% year-on-year. In Q1-Q3 2025, net profit rebounded to 7.48 billion yuan, up 18.51% year-on-year [1][7]. Business Strategy - The company has a clear strategic focus on innovative drug CDMO services, with a growing pipeline of projects in peptide and conjugated nucleic acid technologies. The company is expanding its production capacity for peptides to 800 kg/year and is establishing commercialization capabilities for small nucleic acids [4][7]. Market Outlook - The report highlights the high market demand for innovative drugs, which is driving the growth of the CDMO sector. The company is expected to benefit from this trend, with projected revenues of 56.70 billion yuan, 62.78 billion yuan, and 69.57 billion yuan for 2025, 2026, and 2027, respectively [7][9].

Investment Rating - The report assigns a "Buy-A" investment rating to the company, with a 6-month target price of 128.10 CNY per share [5][6]. Core Insights - The company achieved a revenue of 4.63 billion CNY in the first three quarters of 2025, representing a year-on-year growth of 11.82%. The net profit attributable to shareholders was 800 million CNY, up 12.66% year-on-year [2][3]. - The revenue for 2025 is expected to grow by 13%-15%, driven by a significant increase in the order delivery scale in Q4 compared to Q3 [2][3]. - The company is actively expanding its market presence, resulting in double-digit growth in new orders, particularly in the fields of peptides, oligonucleotides, and ADCs [3][4]. - The company has a rich pipeline of mid-to-late stage projects, which is expected to support long-term stable growth. There are 11 small molecule projects in the validation batch stage and 9 emerging business projects expected in the second half of 2025 [4]. Summary by Sections Financial Performance - For the first three quarters of 2025, the company reported revenues of 4.63 billion CNY, with a year-on-year increase of 11.82%. The net profit was 800 million CNY, reflecting a growth of 12.66% [2][3]. - The projected net profits for 2025 to 2027 are 1.13 billion CNY, 1.32 billion CNY, and 1.52 billion CNY, with year-on-year growth rates of 19.4%, 16.6%, and 15.1% respectively [5][11]. Market Expansion - The company is increasing its market development efforts, leading to a significant rise in new orders. The global investment in innovative drugs has seen a notable recovery, with VC&PE funding in 2025 increasing by 32% globally, 33% in the U.S., and 72% domestically [3]. Project Pipeline - The company has a strong project pipeline with over 10 mid-to-late stage clinical projects in popular targets such as peptides and small nucleic acids. Additionally, there are 8 NDA projects for toxin conjugates [4].

Core Viewpoint - Shanghai Haoyuan Chemexpress Co., Ltd. reported significant growth in revenue and net profit for the first half of 2025, driven by strong performance in its high-margin life science reagent business and effective cost management [1][5]. Financial Performance - Revenue for the first half of 2025 reached approximately 1.31 billion RMB, representing a 24.20% increase compared to the same period last year [5]. - Total profit increased by 130.95% to approximately 181.62 million RMB, while net profit attributable to shareholders rose by 115.55% to approximately 151.76 million RMB [5]. - The company's net assets at the end of the reporting period were approximately 3.02 billion RMB, a 5.05% increase from the end of the previous year [5]. Business Overview - The company focuses on providing professional and efficient small molecule, large molecule, and new molecular type drugs, with a comprehensive service platform covering drug research and production [6][7]. - Key business segments include life science reagents, raw materials, intermediates, and formulation development, with a strong emphasis on innovation and high-value products [6][7]. - The life science reagent business is positioned as a leader in the domestic market, particularly in the area of tool compounds, which are essential for drug discovery [7][8]. Industry Context - The global pharmaceutical R&D expenditure is projected to grow by 1.7% in 2024, reaching approximately 289 billion USD, with the life science reagent market expected to reach 66.82 billion USD by 2026, growing at a compound annual growth rate (CAGR) of 7.9% from 2020 to 2026 [8][10]. - The Chinese life science reagent market has seen significant growth, increasing from approximately 25 billion RMB in 2018 to about 48 billion RMB in 2022, with a CAGR of around 18% [8]. - The market for molecular building blocks is anticipated to reach 54.6 billion USD by 2026, indicating a robust growth trajectory [9].

Investment Rating - The report assigns a "Buy-A" investment rating to the company [5] Core Views - The company is focused on building a leading innovative drug CDMO platform centered on technological innovation, providing comprehensive services to global pharmaceutical companies [13][21] - The sales of the company's key product, Entresto, have shown significant growth, with sales increasing from $507 million in 2017 to $7.822 billion in 2024, reflecting a CAGR of 47.83% [49] - The company is expanding its capabilities in peptide conjugates and small nucleic acid technologies, enhancing its TIDES business [2][50] Summary by Sections 1. Company Overview - The company specializes in small molecule drugs, peptide drugs, conjugated drugs, and small nucleic acid drug R&D and production, offering a one-stop solution from preclinical CMC to commercialization [13] - The management team possesses international experience and a strong background in pharmaceuticals, which supports the company's expansion in the innovative drug CDMO sector [17] 2. Business Segments Small Molecule CDMO - The company has established a leading technology platform to support global pharmaceutical companies, particularly in supplying raw materials for key products like Entresto [3][49] Peptide Conjugate CDMO - The TIDES division is actively expanding its peptide production capacity, with significant investments made to meet growing customer demands [2][50] API Business - The company has strategically positioned itself in the market for specialty APIs, including anti-infectives, CNS drugs, NSAIDs, and antidiabetic drugs, with stable sales growth across these categories [3][55] 3. Financial Projections - The company is projected to achieve net profits of 921 million, 1.052 billion, and 1.158 billion yuan from 2025 to 2027, with respective growth rates of 52.0%, 14.2%, and 10.0% [4][62] - Revenue is expected to grow from 5.635 billion yuan in 2025 to 6.711 billion yuan in 2027, reflecting a steady increase in demand for its services [62] 4. Market Dynamics - The demand for CDMO services is anticipated to recover due to ongoing investments in innovative drug development, particularly in oncology, hypertension, and weight loss sectors [35] - The company has established long-term partnerships with major pharmaceutical firms, which provides a solid foundation for future growth [41]