JOINN(603127) 国盛证券·2024-03-30 16:00Investment Rating - The report maintains a "Buy" rating for Zhaoyan New Drug (603127 SH) [4] Core Views - Zhaoyan New Drug's 2023 revenue met expectations, but net profit declined significantly due to fair value changes in biological assets [1] - The company's core non-clinical research services grew steadily, while clinical research services saw faster growth [1] - Zhaoyan New Drug continues to expand its technical capabilities and customer base, with new customer numbers increasing by approximately 30% year-over-year [1] - The company's order book remains strong, with total signed orders of approximately RMB 2 3 billion and backlog orders of RMB 3 3 billion at year-end [1] Financial Performance - 2023 revenue reached RMB 2 376 billion, a 4 78% year-over-year increase [1] - Net profit attributable to shareholders was RMB 397 million, down 63 04% year-over-year [1] - Core non-clinical research services generated RMB 2 309 billion in revenue, with a gross margin of 43 22% [1] - Clinical research services revenue grew 27 95% to RMB 63 million, though gross margin declined to 21 18% [1] Operational Highlights - The company has a professional service team of 2 510 people as of 2023 year-end [1] - Construction of the Suzhou Phase II facility (20 000 sqm) has been completed, with a 22 000 sqm supporting facility under construction [1] - The Guangzhou Zhaoyan Safety Evaluation Base is progressing as planned [1] - Zhaoyan Yichuang Non-GLP Laboratory, a wholly-owned subsidiary focused on new drug screening, has been completed and put into operation [1] Future Outlook - Revenue growth for 2024 is expected to be in the low single digits due to price competition [1] - Net profit is forecast to grow 26 3% in 2024, reaching RMB 501 million [1] - The company's PE ratio is projected to be 28X for 2024, decreasing to 21X by 2026 [1] - Fair value changes in biological assets are not expected to have as significant an impact on profitability in 2024 as in 2023 [1]