PHARMARON(300759)2024-10-31 05:52Financial Performance - Revenue for 3Q2024 reached RMB 3,213 million, showing a 9.5% increase QoQ and a 10.0% increase YoY [3] - Net profit for 3Q2024 was RMB 308 million, a decline of 65.1% QoQ and 12.6% YoY [3] - Non-IFRS adjusted net profit for 3Q2024 was RMB 417 million, up 18.7% QoQ but down 13.2% YoY [3] - Total revenue for 1-3Q2024 was RMB 8,817 million, a 3.0% increase YoY [4] - Net profit for 1-3Q2024 was RMB 1,422 million, a 24.8% increase YoY [4] Revenue Composition - Laboratory Services accounted for 59% of total revenue, followed by Small Molecule CDMO Services at 22%, Clinical Development Services at 15%, and Biologics & CGT Services at 4% [5] - North America contributed 65% of revenue, Europe 17%, China 15%, and the rest of the world (ROW) 3% [5] - Revenue from North America grew by 4.3%, while Europe saw a growth of 15.7%. Conversely, revenue from China declined by 12.1% [5] Customer Base and Orders - New purchase orders (POs) for 1-3Q2024 increased by over 18% YoY, indicating a modest recovery [4] - Revenue from the top 20 pharmaceutical customers grew by 3.4%, while other customers saw a growth of 2.9% [6] - The company has a diversified customer base, with 15% revenue from the top 20 pharma companies, 82% from other repeat customers, and 4% from new customers [6] Segment Performance - Bioscience services generated strong revenue growth in 3Q2024, accounting for approximately 54% of the segment's revenue in 1-3Q2024 [7] - CMC (Small Molecule CDMO) Services achieved a record revenue of RMB 801 million in 3Q2024, a 34.9% increase QoQ and a 20.9% increase YoY [8] - Clinical Development Services revenue was RMB 463 million in 3Q2024, with a slight growth of 1.3% YoY [9] - Biologics & CGT Services faced challenges, with revenue declining by 16.7% QoQ and 9.6% YoY [10] Expense Management - Selling and distribution expenses as a percentage of total revenue remained stable at around 2.1% to 2.2% from 2021 to 1-3Q2024 [11] - R&D costs as a percentage of total revenue increased slightly to 3.8% in 1-3Q2024 from 3.5% in 1-3Q2023 [11] Future Outlook - The company expects to achieve over 10% revenue growth in the second half of 2024 [17] - Positive free cash flow is anticipated for 2024, with net operating cash flow projected to improve [13]