MEDTIDE (03880) has announced an optimistic profit forecast. The group anticipates revenue for the fiscal year ending December 31, 2025, to be approximately RMB555 million to RMB585 million. This represents an increase of about 25.5% to 32.3% compared to the revenue of approximately RMB442 million recorded for the year ended December 31, 2024.

The group expects its profit for the year ending December 31, 2025, to be in the range of RMB200 million to RMB230 million. This signifies a substantial surge of approximately 237.8% to 288.5% from the profit of about RMB59.2 million reported for the previous fiscal year.

Furthermore, the group forecasts its adjusted net profit, a non-IFRS measure, to be between RMB200 million and RMB230 million for the fiscal year ending December 31, 2025. This indicates growth of approximately 16.3% to 33.7% compared to the adjusted net profit of about RMB172 million for the year ended December 31, 2024.

The growth in revenue is primarily attributed to the successful implementation of the "Follow-the-Molecule" strategy. Contributing factors also include the advantages of the group's integrated Contract Research, Development, and Manufacturing Organization platform, its industry-leading project delivery timeliness, a strong track record of excellent project execution, and continuously robust demand from key clients. This strong demand is driven by the advancement of their research and development pipelines and the rapid expansion of the global peptide market, particularly in the Glucagon-like peptide-1 (GLP-1) sector.

The significant increase in profit is a result of the combined effect of several factors: the aforementioned revenue growth; cost savings and efficiency improvements achieved through the optimization of the group's operational management system; and a fair value gain recognized in the fiscal year ending December 31, 2025, on financial liabilities measured at fair value through profit or loss. This gain is due to the conversion of redeemable liabilities into equity upon the company's H-share listing on the Stock Exchange. In contrast, a fair value loss was recorded for this item in the previous fiscal year.

The rise in adjusted net profit is mainly due to the combined impact of the revenue growth and the cost savings and efficiency improvements realized through the optimization of the group's operational management system.