CITIC Securities International: Raise the target price of Pharmaron Alliance to HK$88, maintain "buy" rating.

China Merchants International released a research report stating that Pharmaron International's profit announcement was welcomed with optimism. It is predicted that by 2025, the company's revenue will grow by at least 45% annually, with net profit increasing by over 38%. Adjusted net profit is expected to grow by over 45%, and excluding the impact of foreign exchange, the growth rate will exceed 65%. In 2025, the company will break its previous record with 70 new comprehensive projects, marking a 32% annual growth. Process performance projects are expected to surge by 125% annually to 18 projects, demonstrating strong commercial production potential. To meet the increasing customer demands, the company announced a cash tender offer to acquire at least 60% equity of Dongyao Pharmaceutical, signaling further strengthening of production capacity. The bank has raised Pharmaron International's target price from HK$74 to HK$88, maintaining a "buy" rating. It is expected that the company's revenue will grow by 45.7%, 36.6%, and 31.7% annually from 2025 to 2027, with adjusted net profit increasing by 34.9%, 38.4%, and 32.9%, respectively. These forecasts do not reflect the impact of the acquisition of Dongyao Pharmaceutical.