2023 Annual Report
During the reporting period, the company achieved operating income of 5,042 billion yuan, up 17.28% year on year; net profit attributable to shareholders of listed companies was 1,037 billion yuan, up 15.12% year on year; net profit attributable to shareholders of listed companies after deducting non-recurring profit and loss was 1,013 billion yuan, up 16.11% year on year; and basic income per share was 1.03 yuan, up 15.73% year on year.
Revenue is growing steadily, and anesthetic products help growth
During the reporting period, the company's industrial business achieved revenue of 4.220 billion yuan, an increase of 14.85%; the commercial pharmaceutical business achieved revenue of 709 million yuan, an increase of 37.25%; other trade and labor services achieved revenue of 47 million yuan, a year-on-year decrease of 26.66%; and other businesses achieved revenue of 66 million yuan, an increase of 50.93% over the previous year. From the product side, the company's approved anesthetic series in recent years (remifentanil, sufentanil, oxycodone, etc.) has achieved rapid growth. During the reporting period, the company achieved revenue of 2,702 billion yuan, up 24.29% year on year, accounting for 53.60% of revenue; psychiatric products achieved revenue of 1,092 billion yuan, up 3.74% year on year, accounting for 21.66% of revenue; and neurological products achieved revenue of 127 million yuan, down 32.22% year on year. The rapid growth of the company's anesthetic products approved this year has driven steady growth in overall performance.
The commercial business is growing rapidly and is expected to continue to provide growth impetus
During the reporting period, the company continuously improved its business pipeline, established a differentiated competitive advantage in the business pipeline, and achieved its own steady growth. By sinking the business of anesthetic, psychiatric, and neurological products, and exploring the grassroots sleep market, we have ensured the rapid growth of non-collected products. The company added 23 new stores, bringing the total number of stores to 160. Through management of products, manpower, systems, marketing, etc., it promoted product sales and reduced procurement costs, further enhancing the company's overall profit level.
R&D expenditure reached a record high, and innovation drove the company's development
During the reporting period, the company's R&D expenditure reached 614 million yuan, an increase of 23.92% over the same period last year.
Currently, the company is developing more than 70 projects, including more than 20 innovative drug projects, 41 key generic drug projects, and 14 consistency evaluation projects. In the new drug research project, NH600001 emulsion injection completed phase II clinical studies, and NH102 tablets, NHL35700 tablets, and YH1910-Z02 injections completed phase I clinical studies. Among generic drug projects, etomide medium/long chain fat emulsion injection and oxelidine fumarate injection (TRV130) have been approved for production; 10 projects are under review. Fourteen consistency evaluation projects have been carried out, 4 consistency evaluation projects have been passed, and 3 consistency evaluation projects are under review. During the reporting period, the company's R&D expenditure increased further, reaching a record high. The company continues to improve the quality of innovative drug research and development, and increases the speed of research and development through cooperation. It is expected to continue to enrich the company's product pipeline and provide favorable support for the long-term steady growth of the company's performance.
Investment advice:
We expect the company's 2024-2026 EPS to be 1.24 yuan, 1.49 yuan, and 1.72 yuan, respectively, with corresponding dynamic price-earnings ratios of 17.43 times, 14.48 times, and 12.49 times, respectively. The company is a leading domestic enterprise focusing on the development and production of central nervous system drugs. As the company's new products are released in the future, it is optimistic that the company's performance will grow over a long period of time and maintain its purchase rating.
Risk warning: risk of drug development falling short of expectations, risk of policy risk, risk of product sales falling short of expectations