West China Securities: Maintains a "buy" rating for Zhaoyan New Medicine, with new orders continuing to show marginal improvement trends.

Huaxi Securities research report pointed out that Zhaoyan Pharmaceuticals' net profit attributable to shareholders in Q1-3 of 25 was 81 million yuan, turning losses into profits, and achieving a non-GAAP net profit of 29 million yuan, turning losses into profits. The financial data continues to show pressure, with new signed orders continuing the trend of marginal improvement. The company's cumulative new signed order amount in Q1-3 of 25 is approximately 1.64 billion yuan, a year-on-year increase of 17%. Among them, the new signed orders in Q3 of 25 were 620 million yuan, a year-on-year increase of 24% and a 5% increase from Q2 of 25. The order side benefits from the improvement in customer demand. Considering the continuous introduction of policies in China to encourage innovation, the active trading of A+H innovative drug stocks, and the recovery trend of IPOs, we believe that domestic demand is expected to improve marginally in the next few years. As one of the core participants in the domestic preclinical CRO business, the company will significantly benefit from this trend. Taking into account the changes in the domestic investment and financing environment and the new signed orders in 23-25, we have adjusted our previous profit forecast and maintained a "buy" rating.