Asymchem Laboratories (Tianjin) (002821) Q3 2024 earnings summary

Executive summary

• Revenue for Q3 2024 was ¥1.44 billion, down 18.09% year-over-year; YTD revenue was ¥4.14 billion, down 35.14% year-over-year, mainly due to the absence of large orders delivered last year.

• Net profit attributable to shareholders for Q3 was ¥211 million, down 59.68% year-over-year; YTD net profit was ¥710 million, down 67.86% year-over-year.

• Excluding large orders, Q3 revenue grew 12.23% year-over-year and 11.21% sequentially; small molecule business revenue grew 18.89% year-over-year and 22.52% sequentially.

• The company accelerated global expansion, with its first European R&D and pilot site operational and new peptide business contracts signed with major pharma clients.

Financial highlights

• Gross margin for the first three quarters was 43.60%; small molecule business gross margin was 48.89%, up 1.19 percentage points year-over-year (excluding large orders).

• New business revenue was ¥2.45 billion in Q3, down 13.26% year-over-year, but expected to recover in Q4.

• Operating profit for the first three quarters was ¥761 million, down 69.41% year-over-year.

• Basic and diluted EPS for Q3 was ¥0.61, down 57.93% year-over-year; YTD EPS was ¥2.01, down 67.05% year-over-year.

Outlook and guidance

• Peptide business capacity exceeded 20,000L to meet global demand; new orders and client expansion remain strong.

• New business segment is expected to return to growth in Q4 based on current order execution.