Incident Overview

The company released its 2022 annual report and the first quarter report of 2023: the company achieved operating income of 3,015 million yuan (+8.73%) in 2022 and net profit of 277 million yuan (-19.72%) from its mother.

The company achieved operating income of 624 million yuan (+10.97%) and net profit of 29 million yuan (+9.72%) from its mother in 2023Q1.

The revenue of cyclopropenol exceeds 400 million yuan, and it is expected that it will continue to be released rapidly

By the end of 2022, cyclopofol had entered about 1,300 hospitals in China, with sales revenue exceeding 400 million yuan in 2022. Additional indications were “induction and maintenance of general anesthesia”, “sedation during intensive care”, and “sedation and anesthesia for gynecological outpatient surgery”. As the business volume of medical institutions recovers after the epidemic, we expect cyclopofol to continue to be released rapidly.

HSK16149 and HSK7653 have completed NDAs

The company's innovative drugs are close to commercialization: HSK7653, a long-acting hypoglycemic agent, was declared NDA in January 2023; the indications for diabetic peripheral neuralgia of the neuralgia drug HSK16149 were declared NDA in October 2022; and clinical phase III research on HSK21542 indications “postoperative analgesia” and “chronic kidney disease itching” is progressing smoothly.

Investment advice

Maintain the company's profit forecast for 2023-24 and add to the 2025 profit forecast: the company's revenue for 2023-2025 is estimated to be 37.35/45.01/5.358 billion yuan respectively, and the 2023-2025 EPS is 0.45/0.63/0.72 yuan respectively, corresponding to the 2,620 yuan/share price of April 24, 2023, and PE for 2023-2025 is 58/42/36 times, respectively, maintaining the company's “buy” rating.

Risk warning

Domestic and international R&D progress of innovative drugs fell short of expectations, and product volume fell short of expectations