Pharmaron Beijing (300759) Q3 2024 earnings summary

Executive summary

• Achieved revenue of ¥3.21 billion in Q3 2024, up 10.02% year-over-year; YTD revenue reached ¥8.82 billion, up 3.00% year-over-year.

• Net profit attributable to shareholders in Q3 was ¥308 million, down 12.62% year-over-year; YTD net profit was ¥1.42 billion, up 24.82% year-over-year.

• Overseas business accounted for 12.78% of revenue, with a 1.34% year-over-year decline, while China-based operations grew 3.67% and contributed 87.22% of revenue.

• New orders increased over 18% year-over-year, with laboratory services and CMC services up 12% and 30% respectively.

Financial highlights

• Gross margin for laboratory services was 44.76%, CMC services 30.82%, and clinical research services 13.20% for the first three quarters.

• Basic EPS for Q3 was ¥0.1746, down 12.92% year-over-year; YTD basic EPS was ¥0.8028, up 24.85% year-over-year.

• Net cash from operating activities for Q3 was ¥417 million, down 13.20% year-over-year; YTD net cash from operations was ¥1.11 billion, down 21.60% year-over-year.

• Total assets at period end were ¥23.57 billion, down 10.98% from year-end 2023.

Outlook and guidance

• Overseas customer demand is gradually recovering, with more projects entering mid-to-late clinical development stages.

• Strategic focus remains on full-process, integrated, and internationalized service expansion.