GemPharmatech (688046) KAIYUAN SECURITIES·2024-11-03 12:53Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has shown steady revenue growth in the first three quarters, with a revenue of 510 million yuan, representing a year-on-year increase of 12.13%. However, the net profit attributable to shareholders decreased by 16.57% year-on-year to 98.21 million yuan due to various factors impacting profitability [3][4] - The company is actively expanding its high-value mouse strains and has seen a steady increase in the utilization rate of new production capacity, enhancing its service capabilities in key markets [4][5] - The company is also expanding its business development (BD) team, with nearly 100 members, and has made significant strides in international markets, achieving a 44.91% year-on-year revenue growth from overseas markets [5] Financial Performance Summary - For the first three quarters of 2024, the company achieved a revenue of 510 million yuan, a 12.13% increase year-on-year, while the net profit attributable to shareholders was 98.21 million yuan, down 16.57% year-on-year. The third quarter alone saw a revenue of 169 million yuan, a 6.70% increase year-on-year but a 7.62% decrease quarter-on-quarter [3][4] - The company has revised its profit forecasts for 2024-2026, now expecting net profits of 146 million yuan, 189 million yuan, and 233 million yuan respectively, with corresponding EPS of 0.35 yuan, 0.46 yuan, and 0.57 yuan [3][6] - The company's total revenue is projected to grow from 622 million yuan in 2023 to 983 million yuan in 2026, with a compound annual growth rate (CAGR) of approximately 19% [6][7] Market Position and Strategy - The company is focusing on innovative mouse models and has introduced over 200 new spotted mouse strains in the first half of 2024. It has also launched 25 wild mouse strains and 600 drug screening mouse strains [4] - The establishment of an overseas facility in San Diego in the first quarter of 2024 is expected to enhance the company's responsiveness and service capabilities for international clients [4] - The company has built a BD team of over 30 members dedicated to international markets, covering North America, Asia-Pacific, and Europe, serving over 200 clients [5]