Jiuzhou Pharmaceutical(603456) 浙商证券·2025-05-16 13:08Investment Rating - The investment rating for the company is "Buy" (maintained) [6] Core Views - The company is expected to see a recovery in its raw materials and intermediates business by 2025, with steady growth in its CDMO business driven by an increasing number of projects [1][2] - The company's performance in Q1 2025 shows a recovery with revenue of 1.49 billion yuan (up 0.98% year-over-year) and a net profit of 250 million yuan (up 5.68% year-over-year), primarily benefiting from the steady growth of CDMO business orders [1][3] Financial Performance - In 2024, the company achieved revenue of 5.16 billion yuan (down 6.57% year-over-year) and a net profit of 606 million yuan (down 41.34% year-over-year) [1][4] - The gross margin for Q1 2025 was 37.42% (up 3.38 percentage points year-over-year), indicating improved profitability [3] - The company expects EPS for 2025 to be 0.97 yuan, with projected revenues of 5.71 billion yuan and net profits of 935 million yuan [4][12] Business Segmentation - The CDMO segment is projected to generate revenue of 3.87 billion yuan in 2024 (down 5.12% year-over-year), with a growing pipeline of projects including 35 approved projects and 84 in Phase III clinical trials [2] - The raw materials and intermediates segment is expected to generate revenue of 1.16 billion yuan in 2024 (down 8.04% year-over-year), with a gross margin of 20.11% [2] Profitability Outlook - The company anticipates further improvement in profitability in 2025, driven by increased capacity utilization in the CDMO business and stabilization in pricing and demand for raw materials and intermediates [3][4]