Core Viewpoint - The report maintains a "Buy" rating for King’s Ray Biotechnology (01548) with a target price of HKD 26.21 per share, emphasizing the company's long-term growth strategy driven by technology and global expansion [1] Group 1: Long-term Strategic Planning - The company aims to become the global leader in biopharmaceuticals (antibody drugs, gene & cell therapy) and synthetic biology services and products, with a focus on solid cash flow to support its life sciences and biopharmaceutical CRDMO foundations [1] - The long-term revenue target is set at USD 3 billion by 2035, with an operating profit margin exceeding 20% [1] Group 2: Business Growth and Market Position - The gene & plasmid business has achieved continuous growth, aiming to expand downstream applications to enhance business potential and support further growth [2] - The antibody protein business seeks to strengthen core competitiveness and achieve market leadership by exploring non-outsourcing markets and providing innovative instruments and solutions [2] - The protein antibody drug CDMO aims to capitalize on the rebound of China's biotechnology sector, accumulate more projects and capabilities, and enhance sales in Europe and the U.S. to expand high-margin revenue sources [2] Group 3: Growth Opportunities and Product Development - The company plans to integrate its business capabilities (life sciences + thriving biology) to transform mature services into one-stop solutions, accelerating productization for downstream clients [3] - Focus areas include high-margin products in enzyme preparations, such as starch sugar, alcohol, and home care, while seeking explosive industry opportunities through innovative protein/enzyme products [3] Group 4: Financial Forecast and Valuation - The company’s revenue projections for the main business segments from 2025 to 2027 are USD 939 million, USD 825 million, and USD 961 million, with year-on-year growth rates of 58%, -12%, and 16% respectively [4] - The valuation method applied is based on a PS multiple of 6 times the projected 2026 revenue, leading to a main business valuation of RMB 35.2 billion [4] - The fair value of the company's stake in Legend Biotech, a U.S.-listed company, is estimated at RMB 17 billion as of November 20, 2025 [4]