goldenlabubuwatch(@pandawatch88):Pharmaron next (a mini Wuxi Apptec, slightly rougher). 3Q26 fine too, though: --no increase in FY guide (still 15-20%) --no increase in purchase order growth vs 1H26 (+30%) Q3: --revenue up 20% --NI up 5% with FX eating a lot of the profit growth (ex FX up 24%) Yours for 18x EBIT 23x PE. Similar multiples to Wuxi, but much lower margins (15% vs 45% for ebit). You only own pharmaron vs Wuxi if you think in an upcycle it has more torque on earnings (NIM and EBIT% has gotten close to 18-20% in prior upcycle). Interesting that revenue from domestic pharmas is growing at 42%, faster than the rest. Still 60% of customer based is US pharmas (served from mainland). Chart below. No mention of AIDD in the release, maybe they said something in the call I haven't checked. This is what they had to say in summer: --Pharmaron sees rising orders from AIDD biotech companies, which now contribute 7-8% of its lab services revenue. --These platforms can generate molecules at scale (most against known targets), but limited high-quality experimental data still constrain their ability to predict drug-like properties. --Management sees little risk of AIDD disrupting the traditional CRDMO business model. Advances in computational drug discovery should expand the pipeline funnel and drive more candidates into development.

2026.10.28 09:08

Pharmaron next (a mini Wuxi Apptec, slightly rougher). 3Q26 fine too, though: --no increase in FY guide (still 15-20%) --no increase in purchase order growth vs 1H26 (+30%) Q3: --revenue up 20% --NI up 5% with FX eating a lot of the profit growth (ex FX up 24%) Yours for 18x EBIT 23x PE. Similar multiples to Wuxi, but much lower margins (15% vs 45% for ebit). You only own pharmaron vs Wuxi if you think in an upcycle it has more torque on earnings (NIM and EBIT% has gotten close to 18-20% in prior upcycle). Interesting that revenue from domestic pharmas is growing at 42%, faster than the rest. Still 60% of customer based is US pharmas (served from mainland). Chart below. No mention of AIDD in the release, maybe they said something in the call I haven't checked. This is what they had to say in summer: --Pharmaron sees rising orders from AIDD biotech companies, which now contribute 7-8% of its lab services revenue. --These platforms can generate molecules at scale (most against known targets), but limited high-quality experimental data still constrain their ability to predict drug-like properties. --Management sees little risk of AIDD disrupting the traditional CRDMO business model. Advances in computational drug discovery should expand the pipeline funnel and drive more candidates into development.

goldenlabubuwatch@pandawatch88

2026.10.26 10:44

Wuxi Apptec just reported 3Q26, at a first glance all seems fine: --FY revenue growth guide moved up from 37% to 41% (expected I think) --Backlog up from rmb66bn in June to 77bn in September (up 36% YTD, from up 25% 1H26) --CF up 70%, capex guide up, EBIT margin flattish 45%, blah blah.. --BUT...MOST important...and after keeping silent quarter after quarter...we finally get an 🥁 "AI drug discovery" mention in the report. Wow. They really can keep up with the times. Imagine also Wuxi management this summer watching Genscript share price moon thinking "seriously? these guys?" Actually we get two: AIDD and AI4S. Check out the prose, it's exquisite: "We efficiently fulfill the rapidly growing demand from global AIDD/AI4S customers for dry & wet lab closed-loop R&D, further solidifying our industry leading position. We continue to enhance AI and automation capabilities, enabling multiple use cases in pharmacology, pathology, and beyond. In response to the needs of AIDD/AI4S customers, we provide high-throughput, diverse, customized, comprehensive, and integrated wet lab services, fostering novel partnerships with high efficiency and synergy."🥲 What does it mean? No one knows what it means, but it's provocative... it gets the people going... let's see how this mixes with a gigabear market out there yours for 17x LTM EV EBIT 22x LTM PE

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