Huayuan Securities: Initiates "Buy" rating on PharmaBlock, pipeline advancement expected to drive revenue growth.

Huayuan Securities research report points out that PharmaBlock Sciences' molecular building block integrated CRDMO, pipeline advancement is expected to drive revenue growth. The company's business originates from novel, unique, and forward-looking molecular building blocks, playing a key role in advancing drug discovery; leveraging its deep accumulation in the molecular building block field and customer trust, it continuously expands chemical R&D services, as well as process development and production of intermediates, APIs, and formulations at the preclinical, clinical development, and commercial stages, forming an end-to-end CRDMO layout from molecular building blocks. Innovative drug financing is recovering, CXO demand is expected to rebound, and the molecular building block industry has broad space. Molecular building blocks are positioned at the front end, and pipeline advancement is expected to drive revenue growth, with the front-end traffic diversion effect emerging. Among various customer types, the revenue share from MNCs is increasing, and capacity expansion and new molecular platforms are expected to help restore gross margin. Haoyuan Pharma/Bide Pharma/Aladdin are selected as comparable companies. Given that pipeline advancement is expected to drive revenue growth, initiate coverage with a "Buy" rating.