Zhongtai Securities: Initiates coverage on UNITED LAB with a "Buy" rating, indicating a broad space for innovative pipelines
Zhongtai Securities has initiated coverage on UNITED LAB with a "Buy" rating. It is expected that the revenue for 2025-2027 will be 15.088 billion, 14.651 billion, and 16.036 billion yuan, respectively, with net profit attributable to the parent company at 2.758 billion, 2.638 billion, and 2.956 billion yuan. The company has a broad innovation pipeline, stable traditional business, and continuous growth in insulin preparations and animal health business, driving its transformation into an innovative drug company for metabolic diseases. The significant licensing of UBT251 demonstrates its R&D strength
According to the Zhitong Finance APP, Zhongtai Securities has released a research report stating that it expects UNITED LAB (03933) to generate 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. The net profit attributable to the parent company is projected to 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, corresponding to PE ratios of 11, 12, and 10 times. Considering the company's broad innovation pipeline and the solid competitive landscape of its traditional business, particularly in insulin preparations and animal health, it has initiated coverage on UNITED LAB with a "Buy" rating.
The firm stated that UNITED LAB, as a leading full-industry chain pharmaceutical group in China, is currently using its innovation pipeline as a growth engine. Empowered by its advantages in traditional business, it is accelerating its transformation into an innovative pharmaceutical company focused on metabolic diseases. In terms of traditional business, as a leader in penicillin intermediates and active pharmaceutical ingredients, UNITED LAB's vertically integrated layout connects the industry chain, relying on mature fermentation processes and scale advantages to continuously strengthen its cost competitiveness. The animal health and insulin preparation businesses are growing steadily, injecting continuous momentum into performance growth. In innovative business, it has achieved a significant licensing deal for UBT251 (GLP-1/GIP/GCG triple-target agonist), showcasing its R&D strength
