Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Insights - The company reported strong performance in Q3 2025, with revenue of 2.059 billion yuan for the first three quarters, representing a year-on-year growth of 27.18%. The net profit attributable to shareholders reached 237 million yuan, up 65.09% year-on-year, indicating significant improvement in profit quality [4][7] - The front-end life science reagent business is the main growth driver, contributing 70% of total revenue in the first three quarters, with a revenue increase of over 31% [7] - The back-end business, focusing on specialty generic drug APIs and related intermediates, has a solid order backlog exceeding 590 million yuan, reflecting a 40.1% year-on-year increase [7] Financial Data and Profit Forecast - Total revenue is projected to reach 2.815 billion yuan in 2025, with a year-on-year growth rate of 24.0% [6] - The net profit attributable to shareholders is expected to be 321 million yuan in 2025, with a growth rate of 59.4% [6] - The gross margin for the front-end business reached 63.05% in the first half of 2025, an increase of 3.48 percentage points compared to the same period in 2024 [7] Business Development - The company has established a comprehensive service system in the ADC field, with its CDMO base in Chongqing successfully operational and passing EU QP audit [7] - The company is expected to see improved capacity utilization in the back-end business as existing orders are gradually converted into revenue, enhancing overall profitability [7] Valuation and Target Price - The target market capitalization for 2025 is estimated at 20.8 billion yuan, representing an upside potential of 22.62% from the current market value [7]

Core Insights - Shanghai Haoyuan Pharmaceutical Co., Ltd. reported a revenue of 2.06 billion yuan for the first three quarters of 2025, marking a year-on-year increase of 27.2%, and a net profit attributable to shareholders of 240 million yuan, up 65.1% year-on-year [2] - The company achieved a comprehensive gross margin of 49.7%, an increase of 2.2 percentage points compared to the previous year [2] - The company’s front-end life science reagent business generated 1.45 billion yuan in revenue, growing over 31.0% year-on-year, accounting for over 70% of the company's main business revenue [2] Business Segments - The front-end life science reagent business is thriving, with over 13,000 global partners and significant revenue growth [2] - The back-end business, focusing on high-difficulty and high-barrier specialty technologies, achieved 600 million yuan in revenue, a year-on-year increase of 16.9% [2] - The back-end small molecule business has an order backlog of 630 million yuan, reflecting a 50% year-on-year increase and consistent quarter-on-quarter growth for four consecutive quarters [2] Technological Advancements - The company has developed an integrated service platform for ADC payload-linker CMC and established a comprehensive service system centered in Shanghai, Ma'anshan, and Chongqing, successfully undertaking over 90 ADC projects in the first three quarters [3] - Haoyuan Pharmaceutical is leveraging its extensive high-value data to integrate AI technology into drug development, creating a one-stop drug screening platform that offers various screening technologies and optimization services [3] Future Outlook - The company anticipates that the innovation wave in the biopharmaceutical industry and global market opportunities will provide significant growth potential [4] - With ongoing synergy across business segments and deep integration of cutting-edge technologies and industry resources, the company aims to expand its competitive edge in innovative drug services [4] - The long-term strategy focuses on globalization and technological iteration to seize industry transformation opportunities and contribute more value to pharmaceutical innovation [4]