Federal Pharmaceuticals (03933)'s revenue in 2023 is in line with this reservation. As intermediate prices remain high and production is at full capacity throughout the year, net profit is significantly higher than the forecast.
The Zhitong Finance App learned that CICC released a research report stating that it maintained the “outperforming industry” rating of Federal Pharmaceuticals (03933), raised the 2024 EPS forecast by 31% to 1.52 yuan because the company's capacity utilization rate exceeded expectations. For the first time, the 2025 EPS forecast was introduced at 1.55 yuan, and the target price was raised 31% to HK$10.5.
The report cites the company's 2023 performance, with revenue of 13.7 billion yuan, up 21% year on year; net profit to mother of 2.7 billion yuan, up 71% year on year. 2H23's revenue was 6.8 billion yuan, up 11% year on year; net profit to mother was 1.4 billion yuan, up 49% year on year. The company's revenue for 2023 is in line with this reservation. As intermediate prices remain high and production is at full capacity throughout the year, net profit is much higher than the forecast.
The bank said that Federal Pharmaceuticals will invest 810 million yuan (+36.2% YoY) in R&D in 2023, and the company expects rapid growth in R&D investment in the next 1-2 years as many new varieties enter clinical trials. The company expects liraglutide injection (diabetes) to be approved in 2024, and simeglutide injection diabetes/weight management indications to be approved in 2025/2027. UBT251 injection (GLP-1/GIP/GCG three agonist) has completed both reports between China and the US. Domestic Phase Ib is being enrolled, and the company plans to seek overseas MNC partners.