1Q26结果：强劲开局，得益于CDMO服务驱动

1Q26 results:a strong start driven byCDMOservices Target PriceRMB39.00(Previous TPUp/DownsideCurrent PriceRMB29.75 Pharmaronreported 1Q26 results,with revenue growing 15.5%YoY toRMB3.58bn and adj.non-IFRS attributable net profit increasing 16.2% YoY toRMB406mn. 1Q26 revenue/adj. net profit accounted for 21.8%/18.8% of our full-year estimates, largely in line with historical ranges. New ordersin 1Q26 surged China HealthcareBenchen HUANG, CFA Demandaccelerated in 1Q26.Total new orders grew by >30% YoY in 1Q26,including >20% and >50% YoY growth for lab services and small moleculeCDMO,respectively, both significantly outpacing their 2025 growth rates.This encouraging order momentum was primarily driven by: 1) Successfulstrategic expansion with MNC clients, with 1Q26 revenue from Top 20 globalpharmaceutical companies soaring 47.98% YoY; 2) A recovery in domesticdemand, as revenue from Chinese clients grew 43.4% YoY, coupled witha Jill WU, CFA(852) 3900 0842jillwu@cmbi.com.hk Strong demand in small molecule CDMO.Thesegment generated revenueof RMB866mn in 1Q26, up 25.0% YoY, significantly outperforming othersegments. Notably, the Company secured a commercial DPcontract for EliLilly's oral small molecule GLP-1 drug,Orforglipron, in 1Q26. Serving over1,000projects annuallywith a broad coverage of promising targets andmolecules, Pharmaron is well-positioned to capture major manufacturingorders in the future. As current capacity is highly utilized, the Company willcontinue to advance the PhII construction at Shaoxing site and plan for new Clinicalservices targeting loss reduction this year.Revenue from clinicalservices increased by11.8% YoY, accelerating from the 7.1% YoY growth in2025. However, segmentGPMcame in at7.1% in 1Q26, down 4.7ppts YoY,primarily due to revenue mix changes and pricing competition in Chinamarket. Regarding new orders,SMO pricing has shownrecoveries, whileCRO price pressure has moderated compared to last year. Nevertheless, Source: FactSet MaintainBUY.Our DCF-based TP is maintained atRMB39.00 (WACC of9.32%; terminal growth of 2.0%; both unchanged). We forecast Pharmaron’srevenue to grow by16.5%/ 16.2%/ 14.9%YoY and adj. net profit to increase Disclosures& Disclaimers Analyst Certification Theresearch analyst who is primary responsible for the content of this research report, in whole or in part, certifies that withrespect to the securities or issuerthat the analyst covered in this report: (1) all of the views expressed accurately reflect hisor her personal views about the subject securities or issuer; and (2)no part of his or her compensation was, is, or will be, directly or indirectly, related to the specific views expressed by that analyst in this report.Besides, the analyst confirmsthat neither the analyst nor his/her associates (as defined in the code of conduct issued by The Hong Kong Securities and Futures Commission) (1) have dealt in or traded in the stock(s) covered in this research report within 30 calendar days prior to thedate of issue of this report; (2) willdeal in or trade in the stock(s) covered in this research report 3 business days after the date of issue of this report; (3)serve as an officer of any of the HongKong listed companies covered in this report; and (4)have any financial interests in the Hong Kong listed companies covered in this report. CMBIGM Ratings BUY: Stock with potential return of over 15% over next 12 monthsHOLD: Stock with potential return of +15% to-10% over next 12 monthsSELL: Stock with potential loss of over 10% over next 12 monthsNOT RATED: Stock is not rated byCMBIGM OUTPERFORM:Industry expected to outperform the relevant broad market benchmark over next 12 monthsMARKET-PERFORM:Industry expected to perform in-line with the relevant broad market benchmark over next 12 monthsUNDERPERFORM:Industry expected to underperform the relevant broad market benchmark over next 12 months Address: 45/F, Champion Tower, 3 Garden Road, Hong Kong, Tel: (852) 3900 0888 Fax: (852) 3900 0800CMB InternationalGlobal MarketsLimited (“CMBIGM”) is a wholly owned subsidiary of CMB International Capital Corporation Limited (a whollyownedsubsidiary of China Merchants Bank) Important Disclosures There are risks involved in transacting in any securities. The information contained in this report may not be suitable forthe purposes of all investors.CMBIGMdoes not provide individually tailored investment advice. This report has been prepared without regard to the individual investment objectives, financial positionor special requirements. Past performance has no indication of future performance, and actual events may differ materially from that which is contained in thereport.The value of, and returns from, any investments are uncertain and are not guaranteed and may fluctuate as a result of their dependence on the or its affiliate(s) to whom it is distributed. This report is not and should not be construed as an offer or solicitation tobuy or sell any securit