药明康德2026年第二季度业绩超预期，上调全年营收目标至15-20%

BuyAsia China Pharmaceuticals /Biotechnology2Q26 growth accelerates; Full-year revenue target raised to 15-20% Cyrus Ng, CFA Research Analyst+852-2203-6208 supports ourviewofan industryrecovery.Coupledwithmanagement'soptimismthatthismomentumwill continue into2027and theirupgradedfull-yearguidance,wehave revised ourFY26E/FY27E revenue forecasts upward by3%and 6%,respectively.However,duetotheramp-upofCDMOservices,wehaveadjustedourgrossmarginforecastsdownwardby1.2pptand1.4pptto34.4%and35.5%.Overall,weraisedourFY26E/FY27Enetprofitforecastsby3%and4%,andnowproject revenuegrowthof18.0%/17.5%andnetprofitgrowthof22.0%/30.0%forFY26E/FY27E Consequently,weraiseour5-yearDCF-derivedPT(WACC:8.3%,terminal growth:2.5%) to HKs36.8. This revision is primarily driven by: (1) the aforementionedearnings adjustments,and(2)rollingoverourforecastperiodfrom2026-30tomid-2026-30.ThecompanycurrentlytradesataFY26E/FY27EP/Eof26x/20x,whileourtarget price implies multiples of 29x/22x. 2Q26growthaccelerated;grossmarginaffectedbyFXheadwinds.Pharmaron'srevenuegrew20.2%YoYand12.3%QoQtoRmb4,017min2Q26,whilenon-IFRSadjustednetprofitgrew23.8%YoYand23.8%QoQtoRmb503m. For 1H26,total revenue reachedRmb7,595m,up17.9%YoY.Grossmargincontracted1.1pptto32.6%,mainlyduetotheappreciationoftheRMBagainsttheUSD. Selling and R&D expense ratios remained stable at 2.2% and 3.9%,respectively,while the admin expense ratio edged down 0.1pptto 13.1%.Overall,10.8%. Robustgrowthforlab servicebusiness,althoughgrossmarginwas slightlyaffectedbyFXheadwinds.Labservicesrevenuegrew13.9%YoYand10.2%QoQtoRmb2,430min2Q26,withbioscienceservicesaccountingforover60%ofsegment revenue. Management noted that bioscience services grew strongly.particularly in new modalities,which grew over25%YoY.Theyalso disclosed thatAIDDrevenueaccountedfor7-8%oflabservicesrevenue. Grossmarginforthelabservicesbusinessdeclined2.2pptYoYand1.9pptQoQto39.8% in 2Q26, mainly due to FX headwinds.Management expects the grossmargin will be stable in 2H26. Pharmaceuticals /BiotechnologyPharmaron CDMOrevenuegrew42.0%YoYand15.9%QoQtoRmb1,012m,withover85%ofCDMOrevenuecomingfromexistinglabservicescustomers.Projectscontinuedtoadvancetolatestages,withmoredeliveriesexpectedinthesecondhalfoftheyear.In addition, the company signed a commercial manufacturing agreementfor anoralGLP-1withanMNC.ManagementseesstrongdemandintheCDMObusinessandexpectsgrowthmomentumtocontinueinto2H26and2027.Asthecompany'skeyfocusis projectdelivery,itplansto accelerate capacity expansionforits smallmolecule (SM)CDMO services inShaoxingand Hangzhou. 15.5%YoYand13.7%QoQtoRmb568m.ManagementnotedthatdemandinChinacontinued to recover amidst improving funding trends. They expect a modestpricingrecoveryfortheSMOandCRObusinessthisyear,followingstabilizationlastyear.Overall, management expects this segment to grow 10-15% YoYthis year,withgross margins continuingto improveQoQ. SolidnewPogrowthandcustomerdemand.Thecompany'snewpurchaseorders(POs)grewbyover30%YoYin1H26.Bysegment,newPOsforlab,CDMO,andclinical services grew by over20%,50%,and30%YoY,respectively.Managementnoted that demand remained robust for lab and clinical services, and saw strongdemand inthe CDMO business. Raised revenue-growthtargetto15-20%YoYfor2026.Backedbystronggrowthmomentum, robust demand, and the continued advancement of their pipeline,managementhasraisedits2026revenuegrowthtargetto15-20%YoY(upfromtheprior guidance of 12-18% YoY). Management noted that this guidance alreadyreflects FXimpacts.Ona constantcurrencybasis,therevenue growthtargetwouldbe 18-23%YoY. operating environment,intensifying market competition,increasing operatingcost, and government-initiated drug price control policy. Pharmaceuticals/BiotechnologyPharmaron Pharmaceuticals/BiotechnologyPharmaron Appendix 1 Company information is sourced from Deutsche Bank, subject companies, and other sources.For disclosures pertaining to recommendations orestimates made on securities other than the primarysubjectof this research,please see the most recently published company reportor visit our global disclosure look-up page on our website at https:/resrch.db.com/Research/Disclosuressures.Aside fromwithin this report, important risk and conflictdisclosures can also be found at https://research.db.com/Research/Disclosures/Disclaimer.Investorsare strongly encouraged to review this information before investing. Important Disclosures Required by U.S. RegulatorsDisclosures marked with an asterisk may alsobe requiredby at least one jurisdiction in additionto the United States.See ImportantDisclosuresRequiredbyNon-USRegulatorsand ExplanatoryNotes.2.DeutscheBankand/orits affiliate(s)mayactas amarketmakerorliquidityproviderinthefinancialinstruments issued by this company. Important Disclosures Required by Non-U.S. RegulatorsDisclosuresmarked withan asterisk mayalso berequired byat leastone jurisdiction inadditiontothe United States.See ImportantDisclosuresRequiredbyNon-USRegulators and ExplanatoryNotes.2.Deutsche Ban