According to a research report released by Sealand Securities Co.,Ltd., the firm estimates that VIVA BIOTECH (01873) will record operating revenue of RMB 2.054 billion, RMB 2.535 billion, and RMB 3.130 billion in 2026, 2027, and 2028, respectively, with net profit attributable to shareholders of RMB 191 million, RMB 261 million, and RMB 353 million, corresponding to PE ratios of 14.5x, 10.6x, and 7.9x. The brokerage expects the CDMO business to continue scaling up, while a recovery in CRO orders combined with AI and new molecular modality empowerment is expected to reshape the company's growth logic. This is the first coverage of the company, and it has been assigned a "Buy" rating.
The main points from Sealand Securities Co.,Ltd. are as follows:
2026H1 Revenue Grew 21.0% Year-on-Year, with Langhua R&D and Production Business Contributing the Bulk of the Increment
In 2026H1, the company achieved operating revenue of RMB 1.0065 billion, up 21.0% year-on-year. Of this, revenue from the Langhua R&D and production business reached RMB 601 million, up 47.0% year-on-year. CDMO business revenue stood at RMB 435 million, up 75.4% year-on-year, with growth mainly driven by two new commercial projects: a peptide project that has entered the commercial production stocking stage, and a small molecule project currently in the PPQ production stage, which is expected to achieve commercial launch in 2027.
CRO New Orders Up 42.1% Year-on-Year, Revenue Growth Expected to Gradually Recover
In 2026H1, CRO business revenue was RMB 405 million, down 4.2% year-on-year, or down 1.2% at constant currency. During the same period, the number of CRO business clients reached 1,984, up 18.9% year-on-year, and new orders increased by approximately 42.1% year-on-year. In 2026H1, the company added 212 independent target studies, bringing the cumulative number of studies to 2,557, and delivered 9,278 protein structures, bringing cumulative deliveries to 108,163. Revenue from wet-lab validation for AI clients accounted for approximately 15.0% of total CRO revenue, while revenue related to new molecular modalities rose to 17.7%.
AI Client Wet-Lab Validation Revenue Accounts for About 15.0% of Total CRO Revenue; New Molecular Modality-Related Revenue Rises to 17.7%
As of 2026H1, the company's AIDD had cumulatively participated in 228 projects with 92 clients. Revenue from AI-participated projects accounted for 14.0% of total CRO revenue, while wet-lab revenue from AI drug discovery-related clients accounted for 15.0%. Revenue related to new molecular modalities accounted for approximately 17.7% of CRO revenue. In March 2026, the company entered into an AI-driven drug discovery collaboration with NVIDIA to advance the design of small proteins targeting ActRIIA.
VBI Incubation Pipeline Expands to 232 Programs; Exit and Financing Progress for Investee Companies Continues
As of 2026H1, VBI had cumulatively invested in and incubated 93 companies, with a combined product pipeline of 232 programs, of which 44 have entered the clinical stage. Cumulative cash returns from incubated company exits reached approximately RMB 218.4 million. By the end of 2025, 13 invested and incubated companies completed new rounds of financing, with total financing exceeding USD 453.3 million.
Risk Warnings
Risks include: CDMO new capacity construction and utilization falling short of expectations; CRO order conversion and demand recovery falling short of expectations; AI business development falling short of expectations; fair value changes of incubated companies disrupting profits; client R&D failures and client attrition; intensifying industry competition; geopolitical and exchange rate fluctuation risks; cash flow and debt repayment risks; and benchmark products and data being for reference only.
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