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]