An introduction to this reportReelpennslammeriii3500After excluding large orders, conventional business grows steadily, polypeptides and other emerging businesses continue to advance, are optimistic about long-term growth space, and maintain the overweight rating. Key points of investment: maintain the overweight rating. 2024Q1 revenue 14Reelpennslammeriii3500The net profit is 282 million yuan (- 55.27%) and 254 million yuan (- 58.88%) respectively. The performance is in line with expectations. Considering that the new business is continuously affected by the investment and financing environment, the EPS forecast for 2024-2026 is downgraded to 3.20max 4.09max 5.34 yuan (the original 3.78max 4.55max 5.74 yuan). Taking into account the average valuation of the comparable company, the 2024 PE33X is given, maintaining the target price of 105.84 yuan and maintaining the overweight rating. Excluding large orders, regular business grew steadily. Excluding large orders, the regular business increased by 15.21%, the income of large multinational pharmaceutical companies increased by 482 million yuan, excluding large orders increased by 19.62% over the same period last year, and the income of small and medium-sized pharmaceutical companies increased by 13.02% over the same period last year. Sub-business segment: revenue of small molecular business is 1.223 billion yuan, excluding large orders, year-on-year increase of 26.58%, gross profit margin of 47.34%, confirmed income of 148small molecular clinical projects, 30 commercial projects, and 41 III projects; emerging business revenue of 176 million yuan (- 29.32%), gross profit margin of 17.30%, mainly affected by the domestic investment and financing environment, the profitability of production capacity is expected to improve after climbing. Emerging business continues to advance. The company continues to promote the oligonucleotide CDMO business, by 2023 solid-phase peptide synthesis capacity of 10250L, 2024H1 is expected to reach 14250L; preparation CDMO continues to increase customer development efforts, the number of new orders signed in 2023 increased by 50% compared with the same period last year. Biological macromolecules deliver the first double anti-ADC project. The first IND project of synthetic biotechnology was successfully delivered. In 2023, the continuous stream technology export business will undertake 19 new projects, with an amount of more than 250 million yuan. The emerging business sector continues to advance and is expected to continue to contribute to long-term development. Catalyst: the progress of orders is higher than expected, and new businesses such as chemical and biological macromolecules are expanding rapidly. Risk hint: industry competition aggravates risk, geopolitical risk, commercial order fluctuation risk. [disclaimer] this article only represents the views of a third party and does not represent the position of Hexun. Investors operate accordingly, at their own risk.

[disclaimer] this article only represents the views of a third party and does not represent the position of Hexun. Investors operate accordingly, at their own risk.