Maintain the overweight rating. The company's 23Q1-3 revenue is 30.395 billion yuan (+ 9.10%), deducting non-return net profit of 2.16 billion yuan (+ 13.62%), deducting equity incentive fees and participating in holding R & D institutions and other profit and loss effects, deducting non-return net profit of 2.462 billion yuan (+ 19.36%). The revenue in the third quarter is 10.009 billion yuan (+ 3.61%), deducting the non-return net profit of 733 million yuan (+ 16.43%), and the non-profit is slightly higher than expected; considering that the company continues to improve its operation and management capacity, reduce the cost and increase efficiency, raise the EPS for 23-25 years to 1.68pm 2.04pm 2.40 yuan (the original 1.62max 1.94max 2.36 yuan).
Maintain the target price of 53.83 yuan, corresponding to 24 years PE 26X, maintain the overweight rating.
Performance has grown steadily. The revenue (including CSO) of China-US East China in the pharmaceutical industry sector was 8.994 billion yuan (+9.48%), with 1.835 billion yuan (+13.41%) deducted from non-parent enterprises. The revenue of industrial and micro business excluding specific commercial products increased by 36.22% year-on-year. Pharmaceutical commercial revenue was 29.291 billion yuan (+6.99%), which is expected to be affected by terminal control in the third quarter. Medical beauty sector revenue 1.874 billion yuan (+36.99%), foreign revenue 973 million yuan (+23.27%), EBITDA 17.29 million pounds. Domestic Xinkeli Aesthetics (Girl Needle) revenue 824 million yuan (+88.79%), profitability continued to improve.
The pipeline under study is expected to be cashed in six times. ELAHERE, the world's first ADC drug, is expected to be approved for marketing in China in 24 years; Maihuatinib completed Phase III study in July 2023 and is expected to be approved in 24 years; liraglutide injection was approved for marketing for diabetes and weight loss indications in March and June 2023 for the first time in China, and its promotion outside the hospital will be accelerated within the year. Phase III clinical studies of semeglutide injection have been initiated and enrollment of the first subject was completed in September 2023. The product pipeline is expected to be gradually realized.
Catalyst: accelerated clinical progress, higher-than-expected development of industrial and micro business, higher-than-expected demand for medical and beauty products? Risk hint: the progress and commercialization of innovative drug research and development are not as expected, and the risk of medical accident