Incident: The company released the “Double Improvement of Quality and Return” action plan, explaining various measures such as innovation, information disclosure, governance, shareholder returns and social responsibility, demonstrating the company's confidence in long-term development.
We value shareholder returns and social responsibility, and insist on sharing development results and ESG empowerment. In January 2024, the company issued the “Shareholder Return Plan for the Next Three Years (2023-2025)”. Under the conditions of cash dividends for the next three years, the company's annual cash distribution profit will not be less than 40% of the distributable profit achieved in that year. Furthermore, the company has continued to implement cash dividends for 11 consecutive years, fully taking into account the relationship between the company's current development and long-term plans, and safeguarding the rights and interests of small and medium-sized shareholders on a positive level.
Furthermore, the company will continue to strengthen in-depth ESG efforts, strengthen corporate ESG goals and internal management, improve the overall governance level of listed companies in terms of expanding disclosure channels from a diversified perspective, enhance the detailed level of disclosure content, etc., strive to clearly and transparently display the company's ESG situation to investors and the public, integrate ESG concepts into daily management, actively disclose more ESG performance to regulators and investors, improve the quality of ESG information disclosure, and promote the company's sustainable development. As of 2023, the company has published ESG reports for four consecutive years.
Innovation drives development, and I am optimistic about the implementation of the company's multi-business layout. The company adheres to the industrial development position centered on the field of pharmaceutical and health innovation, builds a complex investment group combining industry and capital, continuously promotes diversified business pipelines, international development paths, and differentiated competitive strategies, and consolidates and enhances the market position of core leading products. By business area, 1) Adult endocrine field: Long-acting growth hormone is expected to be completed in 2025 and launched in 2027. A new generation of long-lasting products under development is expected to launch clinical trials in the US by the end of 24, gradually building a pipeline layout focusing on long-term growth hormone, focusing on muscle gain and fat loss; 2) Gastric cancer treatment: the company actively promotes the research and development of quintuximab injections, and the product is expected to become the only second-line gastric cancer treatment in the world after 25 years; 3) Gout treatment and prevention: The company's research and development of injectable kinnarumab is expected to advance smoothly in the future Become a cure for gout Preferred medication and preventative medicine for arthritis; 4) Medical and aesthetic field: The company mainly develops new drugs in the field of skin health to help supplement products such as hyaluronic acid, collagen, body building, muscle gain and fat loss with unique competitive barriers to form a product portfolio; 5) Other business areas: the anaesthesia sector introduced compound lidocaine products in the early stages, and the stomach market was successfully approved for marketing in the field of weight loss. The promotion is progressing well at this stage.
Profit forecasting and investment advice. We expect the company's performance in 23-25 to be 47.7/54.9/6.33 billion yuan, an increase of 15.1%/15.2%/15.2% over the previous year, and the corresponding PE is 11/9/8 times, respectively, maintaining the “buy” rating.
Risk warning: Market competition increases risk; risk of product sales falling short of expectations; related policy risks.