GENSCRIPT BIO(01548) 交银国际证券·2024-08-13 05:39Investment Rating - The report maintains a "Buy" rating for the company, King’s Ray Bio (1548 HK), with a target price of HKD 28.75, indicating a potential upside of 122.9% from the current closing price of HKD 12.90 [6][7]. Core Insights - The non-cell therapy business of King’s Ray Bio is expected to stabilize and improve starting from the second half of 2024, driven by a recovery in new orders and robust growth in life sciences services [1][2]. - The company has adjusted its revenue and profit forecasts to reflect a more cautious outlook for the non-cell therapy business while being optimistic about the sales potential of Carvykti [2][3]. - The report highlights a significant increase in revenue from the life sciences segment, which grew by 10% year-on-year, and a notable 44% increase in revenue from the industrial enzyme segment [1][2]. Financial Forecast Adjustments - Revenue projections for 2024 have been adjusted to USD 1.230 billion, reflecting a decrease of 2.7% from previous estimates, while 2025 and 2026 projections have been increased by 4.5% and 2.4%, respectively [3]. - The gross profit for 2024 is forecasted at USD 667 million, with a gross margin of 54.2%, which is a decrease from the previous forecast of 55.8% [3]. - The adjusted net profit for 2024 is projected to be a loss of USD 165 million, improving to a profit of USD 65 million in 2025 and USD 190 million in 2026 [3][7]. Business Segment Performance - The life sciences services segment is valued using a P/E method with a target multiple of 15.0x, contributing significantly to the overall valuation of the company [5]. - The CDMO (Contract Development and Manufacturing Organization) business is under pressure in the short term, but new orders for protein/antibody drugs have shown recovery, indicating potential for future growth [2][3]. - The report emphasizes the importance of the company's strategic focus on innovation and capacity expansion in driving long-term growth [2][5].