Bocom International released a research report stating that, based on Asymchem Laboratories (Tianjin) Co., Ltd. (06821) revised 2026 performance guidance, it has raised its profit forecasts for 2026-27. Continuing to use an exit valuation discounting method and a 21x exit P/E ratio, the firm increased its target price by 8% to HK$123.2 (or RMB 145.3), maintaining a Buy rating. In 2025, the company's emerging businesses demonstrated strong performance across major sectors, with significant results from its international expansion. The guidance for approximately 20% revenue growth in 2026 exceeded the expectations of both the bank and the market. The company's forward-looking capacity expansion in high-growth sectors is rapidly progressing, which is expected to provide strong long-term growth visibility.
Key points from Bocom International are as follows:
The company's 2025 performance returned to a high-growth trajectory, with 2026 guidance exceeding expectations. Asymchem reported 2025 revenue of RMB 6.67 billion, a year-on-year increase of 14.9%. Adjusted net profit attributable to shareholders surged 56% to RMB 1.25 billion, surpassing the bank's expectations.
Breakdown: 1) Small molecule CDMO business grew 4% year-on-year, with a gross margin of 47%, maintaining an industry-leading level. Throughout the year, the company delivered 445 pre-clinical and early-clinical projects, 70 Phase III clinical projects, and 59 commercial projects (compared to 383/73/48 in 2024). It is anticipated that there will be 16 PPQ projects in 2026, laying the groundwork for future commercial orders. 2) Revenue from emerging businesses increased 57% year-on-year, raising their contribution to total revenue by approximately 8 percentage points to 29%. The gross margin for these businesses significantly improved by 8.5 percentage points to 30%. Notably, overseas revenue surged over 240% year-on-year, highlighting effective international expansion. As of the end of March 2026, the company's total order backlog increased 32% compared to the same period last year, reaching $1.39 billion.
Looking ahead to 2026, management forecasts full-year revenue growth of 19-22% year-on-year (already factoring in a potential negative impact of about 2-3 percentage points from exchange rate fluctuations). Capital expenditure is expected to increase significantly to approximately RMB 2.1 billion, with about 70-80% allocated to capacity expansion for chemical and biologics CDMO businesses.
Emerging businesses across key sectors experienced explosive growth, coupled with rapid global capacity deployment, driving medium to long-term high-growth visibility. In 2025, the company's emerging businesses resumed robust growth: 1) Revenue from the macromolecular chemical CDMO business surged 124% year-on-year to RMB 1.03 billion, with the order backlog growing 128%. The first peptide project was launched in 2025 and began commercial supply; four additional peptide PPQ projects are expected to advance in 2026. Twenty oligonucleotide projects are in late-stage clinical development. The first ADC drug has entered commercial production, with four more ADC projects anticipated to successively reach the commercial stage in 2026. 2) Revenue from the biologics CDMO business surged 96% year-on-year to RMB 290 million, with the order backlog increasing 56%. In high-growth sectors like peptides, oligonucleotides, and ADCs, the company is proactively building capacity, which is expected to effectively support rapid order fulfillment and earnings growth: Total peptide solid-phase synthesis capacity is projected to increase to 69,000L by the end of 2026 (from 45,000L at the end of 2025). Oligonucleotide capacity has reached 120 mol and is expected to increase to 180 mol by the end of the first half of 2026. The first commercial-scale antibody ADC workshop in Fengxian is scheduled for delivery in the second quarter of 2026.
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