Intelligent Finance APP learned that Zheshang Securities released a research report stating that considering the comprehensive layout of software and hardware facilities and internal growth-driven factors, it is expected that Xiamen Xiangyu (600057.SH) will have a net profit attributable to the parent company of 1.211 billion yuan, 1.435 billion yuan, and 1.683 billion yuan from 2020 to 2022, with year-on-year increases of 9.50%, 18.46%, and 17.35%, respectively, corresponding to EPS of 0.56 yuan, 0.66 yuan, and 0.78 yuan. From a growth perspective, the company's compound annual growth rate of net profit attributable to the parent company from 2020 to 2022 is 17.90%, and the PEG of the corresponding 2021E PE is 0.52, which is significantly lower than the valuation relative to the growth. Zheshang Securities believes that the reasonable valuation of the company is around 15 times PE, the reasonable market cap of the 2021 net profit attributable to the parent company is about 21.5 billion yuan, and the relative price still has about 58% room for growth. The first coverage is given a "buy" rating.$PHARMARON (03759.HK)$The increase expanded by more than 20%, as of the deadline, it rose by 22.77%, closing at HK$19.52, with a turnover of 0.213 billion HK dollars.

Citi Securities pointed out that with the start of the US dollar interest rate cut cycle, overseas biomedical investment and financing are expected to further recover, and the recovery of investment and financing sentiment is expected to gradually translate into the performance of CXO companies (In the first half of the year, wuxi apptec, Pharmaron, and other CXO companies' new order volumes increased by 25% and 15% respectively). In addition, after the US NDAA on September 19 did not include the biosecurity proposal, we believe that the probability of the independent biosecurity proposal as a standalone law has decreased compared to before, although there is still a possibility of standalone legislation.

Changjiang Securities previously pointed out that in the first half of the year, Pharmaron's global customer inquiries and visits have also shown signs of recovery from the same period in 2023, with new order amounts increasing by over 15% year-on-year. Among them, new orders for laboratory services increased by more than 10% year-on-year, while new orders for CMC (small molecule CDMO) services increased by more than 25% year-on-year. It is expected that the sector's revenue in the second half of 2024 will increase compared to the first half of the year.

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