Event: the company released the semi-annual performance report of 2023, 23H1 realized revenue of 4.294 billion yuan (+ 12.31%), return to mother net profit and deducted non-net profit of 569 million yuan (+ 0.14%), 621 million yuan (+ 6.58%). In a single quarter, 23Q2 achieved revenue of 2.235 billion yuan (+ 8.99%), net profit of 396 million yuan (- 8.00%) and non-net profit of 433 million yuan (- 4.31%).
Steady performance, rapid growth of preparation business: from a business point of view, the company's 23H1 API and intermediates business achieved revenue of 1.585 billion yuan (+ 2.15%), gross profit margin of 43.69% (- 1.81pct); revenue of finished drug sales business of 2.651 billion yuan (+ 22.31%), gross profit margin of 70.13% (- 5.94pct). In terms of profitability, the company's 23H1 gross profit margin is 60.13% (- 1.86pct) and net profit margin is 13.11% (- 1.96pct). The rates of sales, management, finance and R & D expenses are 16.97% (+ 0.01pct), 14.18% (+ 0.27pct), 0.05% (+ 0.88pct) and 9.95% (- 1.55pct) respectively.
The US preparation business has achieved remarkable results, and the R & D achievements continue to be approved: in the US preparation business, the company accelerated the approval of the ANDA number and continued to dig into the market opportunities for new and old products, with remarkable results. 23H1's US preparation business achieved a year-on-year increase of 73.3% in sales revenue, and a total of 79 products were awarded ANDA numbers (excluding temporary approval), laying the foundation for the future. In terms of domestic preparations, the company actively participated in national collection and regional collection and renewal of standards, losartan potassium hydrochlorothiazide tablets, felodipine sustained-release tablets and other three products successfully won the bid in the eighth batch of national mining, while the company actively promoted research and development, 23H1 achieved 11 new approved products, completed 8 new declared products, and more than 60 products under development. In terms of API business, the company continues to tap market potential, cultivate customer relations, develop new products and new business market share in all directions, and adhere to both endogenous growth and extension expansion. The approval / review of 23H1 API passed 12 varieties (among them:
Domestic 6, European 5, the other 1), complete the new product registration application 21.
Investment suggestion: from 2023 to 2025, we expect the company to achieve an operating income of 100.01x119.31x14,225 million and a net profit of 1.316Universe 1.983 billion yuan. The corresponding PE is 18.94, 15.74 and 13.12 times, respectively, maintaining the "over-holding" rating.
Risk hint: the progress of R & D registration is not as expected; the bid for collection is not as expected; the risk of price fluctuation of raw materials; the risk of exchange rate fluctuation.