Core Insights - The company maintains a "Buy" rating, reporting a revenue of 920 million yuan for H1 2025, representing a 23.48% increase, while net profit attributable to shareholders decreased by 26.54% to 72 million yuan [1] - The company is increasing investment in CMC resources to strengthen core customer relationships and market competitiveness, leading to revised EPS forecasts for 2025-2026 and a new forecast for 2027 [1] Revenue Performance - Revenue from drug research stage products and services was 154 million yuan, down 7.59%, with a gross margin of 57.29%, a decrease of 7.45 percentage points [2] - Revenue from drug development and commercialization stage products and services reached 765 million yuan, up 32.27%, with a gross margin of 25.69%, down 8.30 percentage points [2] Customer Structure and Order Growth - Revenue from Chinese customers was 261 million yuan, up 25.00%, while North American customers contributed 485 million yuan, up 8.65% [3] - The company has over 1,100 projects in early stages and 53 in clinical III and commercialization stages, with significant growth in new chemical entity orders and CDMO business [3] Catalysts - Order growth and capacity ramp-up are exceeding expectations, indicating strong future performance potential [4]

Core Viewpoint - The company reported a revenue of 920 million yuan for the first half of 2025, representing a year-on-year growth of 23.48%, while the net profit attributable to shareholders decreased by 26.54% to 72.5 million yuan [1] Group 1: Financial Performance - In Q2 2025, the company achieved a revenue of 465 million yuan, an increase of 26.48%, but the net profit attributable to shareholders fell by 25.40% to 36.71 million yuan [1] - The operating cash flow for the first half of 2025 was 467 million yuan, showing a significant increase of 240.62% [2] - The gross margin for H1 2025 was approximately 31.05%, down by 9.82 percentage points, while the expense ratio was 20.03%, a decrease of 6.61 percentage points [2] Group 2: Business Segments - Revenue from backend drug development and commercialization services reached 765 million yuan, growing by 32.27%, with CDMO services contributing 548 million yuan, a 60.92% increase [3] - The revenue from frontend drug research services was 154 million yuan, a decline of 7.59%, with CRO services experiencing a significant drop of 24.69% [4] Group 3: Strategic Focus and Future Outlook - The company is focusing on revenue scale expansion and nurturing strategic clients, which has led to a higher increase in operating costs compared to revenue growth [2] - The company is expected to gradually recover its CDMO performance as projects continue to progress towards the backend [3] - The company has adjusted its profit forecasts for 2025-2027, expecting revenues of 1.982 billion, 2.393 billion, and 3.043 billion yuan, with corresponding net profits of 178 million, 253 million, and 368 million yuan [5]

Investment Rating - The report maintains a "Buy" rating for the company, expecting a relative performance increase of over 15% against the benchmark index in the next 6 to 12 months [5][14]. Core Views - The company is experiencing steady recovery with strong growth in the backend, and its integrated advantages are expected to gradually take effect [4]. - The company reported a revenue of 920 million yuan in the first half of 2025, representing a year-on-year growth of 23.48%, while the net profit attributable to shareholders decreased by 26.54% [6]. - The strategic focus is on revenue scale expansion and nurturing strategic clients, which has led to a higher growth rate in operating costs compared to revenue growth [7]. Financial Performance Summary - **Revenue Forecasts**: The company is projected to achieve revenues of 1,982 million yuan in 2025, 2,393 million yuan in 2026, and 3,043 million yuan in 2027, with year-on-year growth rates of 17.37%, 20.73%, and 27.18% respectively [5][7]. - **Net Profit Forecasts**: The net profit attributable to shareholders is expected to be 177.61 million yuan in 2025, 252.88 million yuan in 2026, and 367.84 million yuan in 2027, with year-on-year growth rates of -19.10%, 42.38%, and 45.46% respectively [5][7]. - **Cash Flow**: The operating cash flow for the first half of 2025 was 467 million yuan, showing a significant increase of 240.62% [6][7]. - **Gross Margin**: The gross margin for the first half of 2025 was approximately 31.05%, a decrease of 9.82 percentage points [7]. Business Segment Insights - **Backend Drug Development**: Revenue from backend drug development and commercialization services reached 765 million yuan, growing by 32.27%, with significant growth in CDMO services [7]. - **Frontend Drug Research**: Revenue from frontend drug research services was 154 million yuan, a decrease of 7.59%, but new research facilities are expected to improve growth prospects [7]. Investment Recommendations - The company is positioned as a leading player in the molecular building block sector, leveraging its vertical expansion into CDMO services for long-term growth potential [7].

Investment Rating - The report assigns a "Buy" rating for the stock of the company, indicating a strong performance relative to the benchmark index [14]. Core Insights - The company's revenue for H1 2025 reached 920 million yuan, a year-on-year increase of 23.48%, while the net profit attributable to the parent company was 72 million yuan, a decline of 26.54% [1]. - The overall gross margin for H1 2025 was 31.05%, down 9.82 percentage points year-on-year, primarily due to downward pressure on order prices and depreciation from new capacity [2]. - The CDMO (Contract Development and Manufacturing Organization) business showed significant growth, with revenue increasing by 60.92% year-on-year to 548 million yuan in H1 2025 [3]. - Domestic demand is beginning to recover, with revenue from Chinese clients growing by 25.00% to 261 million yuan in H1 2025 [4][5]. - The company is strategically expanding into high-growth areas such as targeted protein degradation drugs, peptides, and ADC (Antibody-Drug Conjugates) [6]. Financial Summary - The company is projected to achieve total revenue of 1.987 billion yuan in 2025, with a year-on-year growth rate of 17.6% [7]. - The estimated net profit attributable to the parent company for 2025 is 177 million yuan, reflecting a year-on-year decline of 19.5% [8]. - The gross margin is expected to be 33.4% in 2025, down from 42.5% in 2023 [7].

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company achieved a revenue of 1.689 billion yuan in 2024, a year-on-year decline of 2.12%, while the net profit attributable to the parent company was 220 million yuan, an increase of 11.24% year-on-year. In Q1 2025, the company reported a revenue of 455 million yuan, a year-on-year growth of 20.55%, but the net profit attributable to the parent company decreased by 27.67% year-on-year [4][5] - The company has a steady growth in its order backlog, leading to an upward revision of profit forecasts for 2025-2027, with expected net profits of 255 million, 298 million, and 364 million yuan respectively [4][5] Financial Performance - In 2024, the company's revenue from drug development and commercialization services was 1.354 billion yuan, a decrease of 1.83% year-on-year. The revenue from CDMO services was 863 million yuan, an increase of 3.38% year-on-year. Domestic revenue was 449 million yuan, down 17.47%, while international revenue was 1.24 billion yuan, up 4.94% [5][6] - The company signed new CDMO orders worth 12.43% more than the previous year, with the number of active clients increasing by 12.32% to 775 [6] Market Expansion - The company has made significant progress in expanding its overseas market, with European revenue growing by 40.12% year-on-year to 193 million yuan in 2024. North American revenue remained stable at 979 million yuan [5][6] - The company has strengthened its collaboration with multinational pharmaceutical companies, achieving a revenue of 464 million yuan from MNC clients, a year-on-year increase of 16.37% [6] Earnings Forecast - The earnings per share (EPS) for 2025, 2026, and 2027 are projected to be 1.28, 1.49, and 1.82 yuan respectively, with corresponding price-to-earnings (P/E) ratios of 24.7, 21.1, and 17.3 [4][8]