Investment Rating - The report maintains an "Outperform" rating for Genscript Biotech [2][22]. Core Insights - Genscript Biotech reported a revenue of US$519 million for 1H25, representing a year-on-year increase of 81.9%. The net loss attributable to shareholders narrowed to US$25 million, while the adjusted net profit from continuing operations rose to US$178 million, a significant increase of 509.6% [3][15]. Summary by Sections Life Sciences Services and Products - Revenue for this segment in 1H25 was approximately US$247.6 million, an increase of 11.3%. The adjusted gross margin slightly decreased from 53.9% to 51.0%, and adjusted operating profit decreased from approximately US$47.8 million to US$46.4 million. Growth was driven by platform innovation and automation upgrades, improved operational efficiency in production sites, and enhanced customer engagement. The decline in operating profit was attributed to increased investments in marketing transformation and R&D [4][16]. Biologics Development Services - This segment saw revenue increase to US$246.9 million, a year-on-year growth of 511.1%. The adjusted gross margin improved significantly from 14.7% to 73.6%, with adjusted operating profit reaching US$149.6 million, compared to a loss of US$18.9 million in the same period last year. The growth was primarily due to sublicensing revenue from Lixin Pharmaceutical. Excluding this effect, the segment still achieved double-digit growth driven by GMP order completions and global expansion of the viral vector business [5][17]. Industrial Synthetic Biology Products - Revenue for this segment was approximately US$28.3 million, reflecting an 8.4% year-on-year increase. However, it reported an adjusted operating loss of US$0.6 million, compared to a profit of US$2.3 million in the same period last year. The revenue increase was attributed to the expansion of synthetic biology operations in China and the establishment of sales channels and local teams overseas. The operating loss was due to increased R&D expenses, which are expected to support future innovation and revenue growth [6][18]. Valuation - The report employs a segment-based valuation approach, estimating the total equity value of Genscript Biotech at approximately US$6.866 billion, which translates to HK$53.7 billion. This corresponds to a target price of HK$24.62 per share based on the company's total share count of 2.181 billion shares [8][22].