Investment Rating - The report assigns a "Buy" rating for the company, Baicheng Pharmaceutical (301096), marking its first coverage [2]. Core Insights - The company has demonstrated robust revenue growth, with a 23.88% year-on-year increase in revenue for the first half of 2024, reaching 525 million yuan. The net profit attributable to shareholders also grew by 12.35% to 134 million yuan [3][4]. - The CRO (Contract Research Organization) business has shown significant growth, with total revenue of 517 million yuan in the first half of 2024, reflecting a 27.26% increase. The high-margin transformation business continues to drive profitability, achieving a gross margin of 69.85% [4]. - The company is investing heavily in R&D, with a 61.94% increase in R&D expenses to 149 million yuan in the first half of 2024, supporting a pipeline of 17 innovative drug projects [5]. Financial Summary - For the fiscal years 2024 to 2026, the company is projected to achieve net profits of 324 million yuan, 401 million yuan, and 515 million yuan, respectively, with corresponding EPS of 2.97 yuan, 3.68 yuan, and 4.73 yuan [6][8]. - The company's revenue is expected to grow from 1.268 billion yuan in 2024 to 2.011 billion yuan in 2026, with growth rates of 24.66%, 25.81%, and 26.05% for the respective years [6][8]. - The current P/E ratio is projected to decrease from 13.18 in 2024 to 8.28 in 2026, indicating an attractive valuation as earnings grow [6][8].
百诚医药：收入稳健增长，转化业务表现亮眼