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]