Core Viewpoint - Guolian Minsheng Securities initiates coverage on Baiao Saitu (02315) with a "Buy" rating, highlighting the robust growth across its three main business segments and the positive impact of the "Thousand Mice and Ten Thousand Antibodies" initiative on financial performance [1] Group 1: Model Animals - The company dominates the humanized mouse market with over 1,700 strains, contributing significantly to revenue, with sales and licensing expected to generate 257 million yuan (94% of revenue) by H1 2025 [1] - The sales of model animals are projected to grow at a CAGR of 51.6% from 2022 to 2024, with increasing customer repurchase rates [1] - By 2024, overseas sales of model animals are expected to account for 56.4%, with a mature U.S. subsidiary facilitating order acquisition [1] Group 2: Preclinical CRO Services - The preclinical CRO services segment, which extends from model animals, has an overseas revenue share of 79%, benefiting from a recovering investment environment [2] - The pharmacology and efficacy team operates across Beijing, Haimen, and the U.S., having completed over 6,350 drug evaluation projects for approximately 950 global partners by H1 2025 [2] - Revenue for this segment reached 155 million yuan in H1 2025, reflecting a year-on-year growth of over 90% due to increased client numbers driven by industry growth [2] Group 3: Antibody Molecule Transfer/Authorization - The revenue model based on upfront payments, milestones, and sales sharing allows for significant revenue growth as pipelines advance [3] - The "Thousand Mice and Ten Thousand Antibodies" initiative has created a vast array of antibody combinations, reducing R&D time and uncertainty for pharmaceutical companies [3] - By H1 2025, the company has signed 61 transfer/authorization/co-development projects with renowned pharmaceutical firms, with a projected CAGR of 58.3% for this segment from 2022 to 2024 [3]

Core Viewpoint - Guolian Minsheng Securities initiates coverage on Baiaosaitu (02315) with a "recommended" rating, highlighting the company's three major business segments experiencing high growth and industry prosperity, alongside significant financial relief from fundraising efforts as the "Thousand Mice and Ten Thousand Antibodies" plan achieves milestones [1] Group 1: Model Animals - The company dominates the humanized mouse market with over 1,700 strains, contributing significantly to core profits, with a projected sales revenue of 257 million yuan from humanized mice sales and licensing by H1 2025, accounting for 94% of revenue [1] - The sales CAGR for model animals is expected to be 51.6% from 2022 to 2024, with increasing customer repurchase rates [1] - By 2024, overseas sales of model animals are projected to account for 56.4%, with a mature U.S. subsidiary facilitating rapid order acquisition [1] Group 2: Preclinical CRO Services - The preclinical CRO services segment, which extends from model animals, has an overseas revenue share of 79%, with strong growth certainty amid a recovering investment environment [2] - The pharmacology and efficacy team operates across Beijing, Haimen, and the U.S., having completed over 6,350 drug evaluation projects for approximately 950 global partners by H1 2025 [2] - Revenue for this segment reached 155 million yuan in H1 2025, reflecting a year-on-year growth of over 90%, driven by industry prosperity and a significant increase in client numbers [2] Group 3: Antibody Molecule Transfer/Authorization - The revenue model based on upfront payments, milestones, and sales sharing allows for stepwise revenue growth as pipelines advance, significantly reducing uncertainty for pharmaceutical companies [3] - The "Thousand Mice and Ten Thousand Antibodies" plan has created a vast array of antibody formats, positioning the company as a potential global source of new drug development [3] - By H1 2025, the company has signed 61 transfer/authorization/co-development projects with renowned pharmaceutical companies, with a projected CAGR of 58.3% for this segment from 2022 to 2024 [3]

Core Viewpoint - The stock of Zhaoyan New Drug (06127) has risen over 5%, currently trading at 22.38 HKD with a transaction volume of 116 million HKD, driven by a recovery in demand for preclinical CRO clients and a tight supply of experimental monkeys [1] Group 1: Market Dynamics - Demand for preclinical CRO services is recovering, particularly for new technology platforms such as large molecules (multi-antibodies, ADC), small nucleic acids, peptides, and cell gene therapies, which require macaques for safety evaluation tests [1] - The price of experimental macaques has increased significantly, with 3-5 year old macaques now priced at 140,000 RMB each, indicating a supply-demand imbalance in the market [1] Group 2: Financial Implications - According to estimates from Founder Securities, if the average price of experimental macaques is accounted for at 84,900 RMB each in 2024 and increases to 140,000 RMB by Q4 2025, the estimated new fair value contribution for Zhaoyan New Drug in 2025 could be approximately 220 million RMB, based on a known supply of 23,200 macaques and an estimated output rate of 17% [1]

IPO Review and Registration Progress - Five companies passed the IPO review last week, including振石股份, 易思维, 爱得科技, 通领科技, and 兢强科技, with振石股份 planning to raise approximately 39.81 billion yuan [3][4] - 易思维 focuses on machine vision equipment for automotive manufacturing, reporting revenues of 20.4 million yuan and a net loss of 7.1755 million yuan for the first three quarters of 2025 [4] - Three companies passed the review at the North Exchange, with爱得科技 specializing in orthopedic medical devices, 通领科技 in automotive interior parts, and 兢强科技 in electromagnetic wire [5] Upcoming IPOs - Three companies, 永大股份, 美德乐, and 海菲曼, are set to present their IPO applications this week at the North Exchange [6] - 永大股份 reported revenues of 696 million yuan in 2022, with a projected decline in net profit for 2024 [6] - 美德乐's revenue from products in the new energy battery sector accounts for about 60% of its main business income, with high customer concentration [7] - 海菲曼 expects revenues between 232 million and 266 million yuan for 2025, with a net profit forecast of 70 million to 85 million yuan [7] New IPO Applications - Two IPO applications were accepted last week, with 北斗院 focusing on satellite navigation and space control technologies, and 格林生物 specializing in fragrance products [8][9] - 北斗院's revenue for 2025 is projected at 112 million yuan, with a declining gross margin trend [9] - 格林生物 aims to raise approximately 690 million yuan for various projects, including the production of high-end fragrances [9] New Stock Listings - Four new stocks were listed last week, with 大鹏工业 seeing a significant first-day increase of 1211.11% [11][13] - 海安集团 will officially list on November 25, with a share price of 48 yuan, reporting a revenue decline of 4.77% for the first three quarters of 2025 [12] - Other companies listed include 北矿检测, 恒坤新材, and 南网数字, all showing substantial first-day gains [13] Upcoming New Stock Subscriptions - Two new stocks are scheduled for subscription this week, with 摩尔线程 setting a record IPO price of 114.28 yuan per share [14] - 摩尔线程 expects to raise approximately 7.576 billion yuan, which would be a record for the year in the Sci-Tech Innovation Board [14] - 百奥赛图 anticipates a revenue of 1.351 billion yuan for 2025, reflecting a growth of 37.75% [16]

Investment Rating - The investment rating for the CXO industry is "Outperform the Market" [1] Core Insights - The CXO index has increased by over 50% in the past year due to the easing of geopolitical risks, recovery in investment, and the digestion of high pandemic baselines [2] - Chinese CXO companies are analyzed from short-term, medium-term, and long-term perspectives to understand their global competitiveness [2] - Major players in the large molecule CDMO sector include WuXi Biologics and WuXi AppTec, with over 70% of their revenue coming from overseas [2] - The small molecule CDMO sector shows strong recovery in domestic companies, with significant order growth and a favorable competitive landscape [2] - Clinical and preclinical CROs are currently in an adjustment phase, with domestic order prices stabilizing but showing no significant recovery [2] Summary by Sections Large Molecule CDMO - Short-term performance shows high growth with competition from Japan, South Korea, and Europe [2] - Medium-term order growth is led by South Korean companies like Samsung Biologics, indicating intense competition for Chinese firms [2] - Long-term capital expenditures remain high, reflecting confidence in future demand [2] Small Molecule CDMO - Domestic companies are recovering from pandemic-related performance dips, with overall growth expected in 2025 [2] - Order growth is robust, with WuXi AppTec's orders increasing by 47% year-on-year by the end of 2024 [2] - Long-term capital expenditures show divergence, with some leaders like WuXi AppTec expected to continue increasing investments [2] Clinical/Preclinical CRO - Both domestic and international CROs are in an adjustment period, with 2022-2023 investment cooling reflected in 2024 performance [2] - Medium-term order volumes and values are beginning to show growth, while international orders remain stable [2] - Long-term capital expenditures vary among companies, indicating potential supply-demand mismatches in the short term [2] Emerging Business Opportunities - Rapid development in new molecular businesses such as peptides and oligonucleotides is expected to open up growth opportunities in the CXO sector [3] - Generic drug CROs are actively pursuing innovative transformations to seek new growth points [3]