Core Insights - Small nucleic acid drugs are considered potential candidates for treating various diseases due to their unique molecular structure and therapeutic mechanisms [1][3] - The global nucleotide market, including oligonucleotides and monomers, is projected to reach a sales figure of $730 million in 2023, with China being the largest production market [3] Group 1: Impact of Phosphoramidite Monomers - Phosphoramidite monomers significantly influence the research and development process of small nucleic acid drugs, serving as a fundamental raw material [1] - These monomers enhance the stability and biological activity of small nucleic acid drugs and drive innovation in their development [1] Group 2: Oligonucleotides as Key Raw Materials - Oligonucleotides are the primary raw materials and major cost source in the production of nucleic acid drugs, with most nucleic acid drugs being composed of oligonucleotides [2] Group 3: Future Demand and Opportunities - The demand for phosphoramidite monomers is expected to grow significantly, benefiting companies within the supply chains of multinational pharmaceutical firms [3] - Approximately 90% of global nucleotides are utilized for nucleic acid drug production, indicating a strong market focus [3] Group 4: Investment Recommendations - Companies to watch in the innovative drug and device sector include Furuya Co., Ltd. (300049.SZ), Anglikang (002940.SZ), and others [4] - In the CXO and raw material sectors, companies such as WuXi AppTec (603259.SH) and Jiuzhou Pharmaceutical (603456.SH) are recommended for attention [5]

Core Insights - The report emphasizes the significant role of phosphoramidite monomers in the small nucleic acid industry chain, highlighting their impact on the development of small nucleic acid drugs, which are considered promising candidates for treating various diseases due to their unique molecular structures and therapeutic mechanisms [1][6][10] - The report predicts robust growth in the demand for phosphoramidite monomers, with multinational pharmaceutical companies likely to benefit from this trend, as the global nucleotide market is projected to reach USD 730 million in 2023, with China being the largest production market [10][11] Section Summaries Phosphoramidite Monomer's Role - Phosphoramidite monomers are crucial raw materials for synthesizing small nucleic acid drugs, enhancing their stability and biological activity, and driving innovation in drug development [6][9] - The solid-phase phosphoramidite method is the mainstream technique for synthesizing oligonucleotides, which are a major cost component in nucleic acid drug production [9] Market Dynamics - The report notes that 90% of global nucleotides are used for nucleic acid drug production, with only about 10% allocated to health foods and agriculture [10] - The small nucleic acid drug market is primarily dependent on major multinational pharmaceutical companies, indicating potential benefits for companies within their supply chains [11] Investment Recommendations - The report suggests focusing on innovative drug companies such as Furuya Co., OncoOne, and others, as well as raw material suppliers like WuXi AppTec and others, indicating a diverse range of investment opportunities in the sector [10]

Core Viewpoint - The company is focusing on the development opportunities in the oligonucleotide drug field and has established a specialized team to enhance its capabilities in this area [1] Group 1 - The company has designed a diverse range of molecular building blocks, including nucleotides, phosphoramidites, and delivery technologies, with over 500 product types currently available [1] - In the first half of this year, the company integrated internal resources to establish a professional peptide and oligonucleotide team (PTCoE) [1] - The company is accelerating its capabilities in oligonucleotide synthesis, chemical modification, conjugation, process development, and analysis [1] Group 2 - The company will continue to closely monitor industry technology development trends and will timely advance relevant layouts [1]

Investment Rating - The report maintains an "Accumulate" rating for the company with a target price of 29.54 RMB [5][6]. Core Views - The company reported a steady performance in Q1 2025, achieving revenue of 1.5 billion RMB, with a quarter-on-quarter increase of 9% and a year-on-year increase of 4%. The net profit attributable to shareholders was 100 million RMB, showing a slight quarter-on-quarter increase of 0.7% but a year-on-year decrease of 4% [1]. - The company is expected to have growth potential due to the gradual ramp-up of new projects and the ongoing industrialization of electronic-grade PI and life sciences sectors [1]. - The company is expanding its market presence, particularly in the lubricant additive sector, with a focus on internationalization through the establishment of a research and production base in Malaysia [2]. - The life sciences segment has shown significant progress, with a pilot workshop for nucleic acid monomers and partnerships with nearly 90 clients, indicating a strong market transition from R&D to dual-track operations [3]. Summary by Sections Financial Performance - The company achieved a gross margin of 21.52% in Q1 2025, remaining stable compared to previous periods. The comprehensive expense ratio was 12%, with a slight increase attributed to higher R&D expenses [2]. - The forecast for net profit attributable to shareholders for 2025-2027 is 480 million, 530 million, and 580 million RMB, respectively, with year-on-year growth rates of 14%, 10%, and 10% [4]. Market Expansion - The company is actively exploring new markets, with a notable 15% increase in lubricant additive exports from Liaoning province in Q1 2025 [2]. - The establishment of a production base in Malaysia is expected to enhance the company's international competitiveness and risk resilience [2]. Business Development - The life sciences segment has made strides with the introduction of the phosphoramidite monomer into the supply chain of downstream clients, and the dNTP products have reached advanced domestic levels with over 70 client collaborations [3]. - The company has completed the acquisition of Yixing Chuangju and is set to supply flexible display leaders in bulk by 2025, indicating a robust growth trajectory in the polyimide sector [3].