APELOA(000739)2024-11-03 07:19Investment Rating - The investment rating for the company is "Outperform the Market" [4][10] Core Views - The company has shown steady revenue growth with a significant improvement in the gross margin of its formulation segment. The revenue for the first three quarters of 2024 reached 9.29 billion yuan, an increase of 9.3% year-on-year, while the net profit attributable to the parent company was 870 million yuan, up 2.2% year-on-year [5][10] - The report highlights the strong performance of the formulation segment, while the CDMO segment experienced a decline in revenue due to a high base effect from the previous year. The raw material segment achieved revenue of 6.90 billion yuan, a year-on-year increase of 15.3%, while the CDMO segment's revenue was 1.42 billion yuan, down 11.4% year-on-year [5][9] - The company is experiencing a high growth rate in its CDMO business, with the number of quoted projects increasing by 85% year-on-year to 1,198 projects, and ongoing projects rising by 47% to 948 projects [2][9] Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved a revenue of 9.29 billion yuan (+9.3%), with a net profit of 870 million yuan (+2.2%) and a non-recurring net profit of 830 million yuan (+0.4%). In Q3 alone, revenue was 2.86 billion yuan (+12.4%), while net profit was 240 million yuan (-2.2%) [5][10] - The gross margin for the formulation segment improved significantly to 62.2%, an increase of nearly 10 percentage points year-on-year, attributed to adjustments in sales models and improved production efficiency [5][9] Segment Performance - Raw Material Segment: Revenue of 6.90 billion yuan (+15.3%), gross profit of 1.08 billion yuan (-0.9%), gross margin of 15.6% (-2.6 percentage points) [5][9] - CDMO Segment: Revenue of 1.42 billion yuan (-11.4%), gross profit of 580 million yuan (-19.6%), gross margin of 40.8% (-4.2 percentage points) [5][9] - Formulation Segment: Revenue of 950 million yuan (+8.6%), gross profit of 590 million yuan (+28.0%), gross margin of 62.2% [5][9] Future Outlook - The company maintains its profit forecast, expecting net profits of 1.123 billion yuan, 1.325 billion yuan, and 1.594 billion yuan for 2024, 2025, and 2026, respectively, with year-on-year growth rates of 6.4%, 18.0%, and 20.3% [10][12]