Overview of events
The company released the third quarter report of 2023: the company realized operating income of 915 million yuan (+ 18.46%), net profit of 192 million yuan (- 2.95%) and non-return net profit of 188 million yuan (+ 3.59%) in the first three quarters of 2023. The company's 2023Q3 realized operating income of 327 million yuan (+ 20.38%), net profit of 824 million yuan (- 3.82%), and non-return net profit of 827 million yuan (- 4.09%).
Steady growth in income and performance in line with expectations
In terms of business, in the first three quarters of 2023, the income of API products was 674 million yuan (+ 9.71%), the income of preparation products was 102 million yuan (+ 33.34%), the income of rights and interests was 45 million yuan (+ 75.04%), and the technical income was 82 million yuan (+ 59.79%). On the product side of the preparation, we believe that the main benefit is that the net collection of micafen and the demand for influenza have led to the growth of preparation sales; the rapid growth of equity sharing income, we believe that it mainly benefits from the sales growth of the company's partners.
Continuous R & D investment and steady expansion of innovative pipelines
Innovative drug end, BGM0504 injection weight loss and type 2 diabetes treatment of two indications have been Ⅱ phase clinical trial ethical approval, type 2 diabetes treatment and weight loss indications of Ⅱ clinical has begun to enter the group. According to Eli Lilly and Co's financial report in the second quarter of 2023, Tirzepatide, a star product with the same target, continued to sell after it was approved by FDA in May 2022, with sales of US $1.548 billion in the first half of 2023. We believe that the related treatment field has a broad market and is expected to provide an increment for future performance growth. At the generic end, tiotropium bromide inhalation spray, tiotropium bromide inhalation spray and salmeterol fluticasone inhalation powder have been verified, and the pilot test of tiotropium bromide inhalation powder has been completed.
Investment suggestion
Maintain the company's profit forecast: the company's operating income for 2023-2025 is expected to be 11.48pm 1.634 billion yuan, respectively, and its EPS for 2023-2025 is expected to be 0.57max 0.69pm 0.89 yuan respectively, corresponding to the closing price of 38.47yuan per share on October 31, 2023, PE is respectively times that of 67-56-43, maintaining the company's "overweight" rating.
Risk hint
Innovative drug research and development risk, product replacement risk, consistency evaluation, price risk with volume procurement and other policy impact, macro-environmental risk