Short-term disturbances have gradually cleared up, and the growth rate recovery in 2024 is highly certain: management expects 2H23 revenue to remain generally stable compared to 1H23; at the same time, as Siludi's stock price gradually stabilizes, the impact of non-recurring profit and loss on net profit throughout the year will be limited. By treatment sector: 1) Xianbi's new sales are less affected by changes in the external industry, but to a certain extent they are affected by short-term medical insurance price cuts and the decline in neurology outpatients/surgeries. Annual sales are expected to be generally stable, but they may resume a high growth rate of more than 20% starting next year; the 2025 guideline recommendation level is expected to rise further, driving the long-term sales peak to 5 billion yuan (injectable dosage form). 2) In the cancer line, the more mature Endo has resumed its growth trend, but newly launched varieties such as Envida and Cosella have been greatly affected by the outside world, but since November, there has been a clear recovery in new cases, and it is expected that the normal pace of dosage will return from next year; 3) Self-immune and anti-infective varieties are basically not affected by the outside. The introduction of BD has accelerated recently, and future revenue growth is expected to maintain steady growth.

2024-25 will welcome a wave of new product launches: the company expects that in 4Q23-2024, 7 products will be approved/submitted new NDA applications, including: 1) the expansion of the indications of cynocine and the approval of the commercialization application of Cosella; 2) the approval of three new drugs, including sublingual tablets, CMAB009, and suvisitazumab; and 3) the submission of NDA applications for Dalilexin and ADC189. For the five newly listed varieties mentioned above, management expects the total sales peak to reach 7.5 billion yuan (the rest will be reduced by 3 billion dollars; the rest will each be 8-1.5 billion). With regard to the IL-4R monoclonal antibody Rademikibart recently introduced to Connard, the company will lead the subsequent development and registration, making every effort to promote the mainland listing declaration at the beginning of next year. It is expected that the peak sales will reach 2 billion yuan after the successful listing.

BD is getting better: 2H23 introduced three drugs, and the total peak sales in mainland China is expected to be close to 5 billion yuan, further enriching the company's layout in the fields of oncology, immunity, and anti-infection treatment.

In terms of license-out, after IL-2mu-FC is authorized to Almirall, it will soon enter clinical trials in the US, and the company will promote overseas licensing of early pipelines such as TNFR2, PD-L1/IL-15V, etc.

The first target in the sector: we maintain the target price of HK$14.0 and the buying rating, corresponding to 27.8x 2024EPE and 0.9x 2024E PEG; the first purchase and selected it as one of the industry's top choices, considering: 1) the rapid expansion of core innovative products drives performance recovery, and the 2023-25 growth rate is expected to far exceed peers and is likely to exceed expectations; 2) increasingly mature self-research capabilities and a significantly differentiated target layout provide more certainty in the medium to long term; 3) the current stock price is far underestimated, and the valuation level is far below that of peers.