The Zhitong Finance App learned that Zhongtai International released a research report stating that it reaffirmed the “buy” rating of Fangda Holdings (01521) and that the target price was lowered from HK$4.68 to HK$3.15. The stock price recently declined with the Hang Seng Index. Considering that the 2021-24E shareholders' net profit CAGR is 31.6%, it is believed that its valuation has reached a safe margin. The bank lowered the company's US business revenue forecast, and lowered the 2022-24E total revenue forecast by 0.1% and the shareholder net profit forecast by 0.3%/2.8%/2.7%; according to the adjusted profit model, the 2021-24E revenue and shareholder net profit CAGR was 28.6% and 31.6%.

According to the report, the company announced earlier that the Shanghai and Suzhou bioanalytical laboratories passed the US FDA remote review in August and September. The US FDA reviewed the four projects of these two laboratories, all of which passed with zero defects. Up to now, its laboratories have passed more than 50 US FDA reviews, which indicates that the quality is very high. Also, due to the company's R&D service market recognition getting higher and higher, in-hand orders have continued to grow rapidly in recent years. In addition, its management also said that the company's total on-hand orders increased by about 40% year on year at the end of September, so it is expected that it will continue to increase rapidly throughout the year.