Zhongtai: Initial "buy" rating given to UNITED LAB (03933), with vast innovation pipeline space.

Zhongtai released a research report stating that it is expected that UNITED LAB (03933) will have revenues of 15.088 billion, 14.651 billion, and 16.036 billion yuan from 2025 to 2027, with year-on-year growth rates of 9.7%, -2.9%, and 9.5% respectively. Net profits attributable to shareholders will be 2.758 billion, 2.638 billion, and 2.956 billion yuan, with year-on-year growth rates of 3.7%, -4.3%, and 12.1% for 2025 to 2027. The corresponding PE ratios will be 11, 12, and 10 times, considering the vast innovation pipeline of the company. The competition landscape in the traditional business is stable, with solid foundations in insulin preparations and animal health business. UNITED LAB is covered for the first time, with a "buy" rating given. The bank mentioned that as a leading pharmaceutical group in China with a complete industry chain, UNITED LAB is currently using its innovative pipeline as a growth engine. With the support of traditional business advantages, it is accelerating its transformation into an innovative pharmaceutical company for metabolic diseases. In terms of traditional business, as a leader in penicillin intermediates and raw materials, UNITED LAB vertically integrates its layout to connect the industrial chain, relying on mature fermentation technology and economies of scale to continuously enhance cost competitiveness. The animal health and insulin formulation business is growing steadily, injecting continuous momentum into performance growth. In the field of innovation, the company has made a significant breakthrough with the UBT251 (GLP-1/GIP/GCG triple target agonist) authorization, demonstrating its research and development strength.