Investment Rating - The report assigns a "Buy" rating for Kanglong Chemical (300759) based on its strong performance and growth prospects [1]. Core Insights - The company has shown robust growth in laboratory services and CMC (Contract Manufacturing Organization) segments, leading to an upward revision of its annual performance guidance [2][3]. - For the first three quarters of 2025, the company achieved a total revenue of 60.04 billion yuan in laboratory services, a year-on-year increase of 15.0%, with a gross margin of 45.1% [2]. - The CMC segment generated revenue of 22.93 billion yuan, reflecting a 16.0% year-on-year growth, with a gross margin of 32.1% [2]. - The company plans to acquire 82.54% of Wuxi Bai'ao, which focuses on structural biology, enhancing its capabilities in early-stage drug development [4][5]. Financial Performance Summary - In Q1-3 2025, the company reported total revenue of 100.86 billion yuan, a 14.4% increase year-on-year, and a net profit attributable to shareholders of 11.41 billion yuan, down 19.8% year-on-year [1]. - Adjusted net profit for the same period was 12.27 billion yuan, up 10.8% year-on-year [1]. - The company has revised its full-year revenue growth target for 2025 to 12-16%, up from the previous 10-15% [3]. Revenue Breakdown - Revenue from the top 20 global pharmaceutical clients grew by 37.9%, accounting for approximately 18% of total revenue [2]. - Revenue from other clients increased by 10.3%, making up about 79% of total revenue, while new clients contributed around 3% [2]. - Geographically, revenue from North American clients rose by 11.9%, European clients by 23.2%, and Chinese clients by 16.1% [3]. Earnings Forecast - The company is projected to achieve revenues of 140.86 billion yuan, 162.03 billion yuan, and 186.47 billion yuan for the years 2025, 2026, and 2027, respectively [7]. - Net profit attributable to shareholders is expected to be 16.71 billion yuan, 20.21 billion yuan, and 24.23 billion yuan for the same years [7]. - The diluted EPS is forecasted to be 0.94 yuan, 1.14 yuan, and 1.36 yuan for 2025, 2026, and 2027, respectively [7].