Events:
On August 16, 2023, the company released the semi-annual report of 2023: the company's operating income in the first half of 2023 was 1.37 billion yuan (+ 9.81%), the net profit was 75 million yuan (+ 7.52%), and the non-return net profit was 68 million yuan (+ 33.35%).
Main points of investment:
The rapid release of new drug products will lead to the growth of income. The company's class 1 intravenous anesthetic, cyclopropofol, was approved to be put on the market in December 2020. The curative effect of the product is better than that of propofol in many aspects.
By the semi-annual report of 2023, cyclopropofol has entered about 2400 hospitals in China, with a sales income of 340 million yuan in the first half of 2023, of which the sales volume in June exceeded 900,000, a record high. The total revenue of the company in the first half of 2023 was 1.37 billion yuan, 122 million yuan higher than that of 1.247 billion yuan in the first half of 2022. Of this total, the income of anesthetic products in the first half of 2023 was 342 million yuan, an increase of 214 million yuan compared with 129 million in the first half of 2022.
With the rapid development of R & D pipeline, new products are expected to be realized one after another. In the first half of 2023, the company is developing 44 preparation projects, including 23 innovative drugs (including 19 in Class 1, 3 in Class 2, 1 in Class 5.1), 20 generic drugs and 1 medical device. In the first half of 2023, the company applied for 3 new listing applications, obtained 5 production approval documents and 6 newly declared clinical applications. As of the 2023 semi-annual report, the company is applying for marketing of four products, namely, the long-acting hypoglycemic drug HSK7653, the postoperative analgesic drug HSK21542, the new indication of HSK16149 "diabetic peripheral neuralgia", and the imported product riluzole oral membrane.
According to the profit forecast and investment rating, the company's income in 2025 will be 3.601 billion yuan / 4.316 billion yuan / 5.251 billion yuan, and the net profit will be 300 million yuan / 434 million yuan / 591 million yuan, corresponding to PE 78.25X/54.06X/39.67X. We believe that the company's innovative product cyclophenol is expected to promote rapid growth, and the R & D pipeline is expected to continue to be realized. Cover for the first time, giving a "buy" rating.
The risk indicates that the progress of new drug research and development is not as expected, the market promotion of new products is not as expected, the risk of product price reduction in medical insurance negotiations, the risk of product participation in collecting market share, and the risk that the progress of overseas listing and commercialization is not as expected. The risk of performance falling below expectations.