Focusing on the anti-virus field, the main business is steady. On April 9, 2024, the company released its 2023 annual report. During the reporting period, the company achieved operating income of 1,412 billion yuan, an increase of 21.73%; net profit to mother was 117 million yuan, an increase of 39.71% year on year; net profit after deducting non-return to mother was 123 million yuan, an increase of 124.62% year on year.
On the same day, the company released its 2024 quarterly report. During the reporting period, the company achieved operating income of 213 million yuan, an increase of 10.34% over the previous year; net profit to mother was 0.2 billion yuan, an increase of 4.75% over the previous year.
Deepen market strategies for key products and steadily achieve product structure adjustments. In 2023, the company's chemical sales revenue increased 92.66% year on year. The market layout for mainly hepatitis C products has been formed, benefiting a continuous increase in the number of patients. Kailliwei's sales revenue increased significantly at the same time, and annual revenue increased by more than 200% year over year.
Kailiwei renewed its contract through national health insurance negotiations, and the reimbursement indications were expanded from gene non-type 1b to “gene type 1, 2, 3, and 6”, covering the main domestic genotypes. The expansion of medical insurance indications has created strategic entry conditions to increase market share. At the same time, thanks to the continuous expansion of terminals and clinical product recognition, Ambrose's sales have also continued to increase, and the company's overall sales revenue has increased. In addition, due to the collection policy, the company's sales revenue of biological products decreased by 12.68% year-on-year during the reporting period.
Steadily increase investment in R&D and accelerate R&D in the research pipeline. The company focuses on the development of functional therapeutic drug combinations for hepatitis B with innovative drugs as the core, and also lays out innovative drug pipelines to improve prevention, protection and clinical cure rates in the field of immune diseases. In the research project in 2023, the Class 1 new drug KW027 obtained a drug clinical trial approval notice, completed the phase Ia clinical trial, and completed the enrollment of the first phase Ib clinical trial; KW-045 completed the phase I clinical trial and completed the enrollment of the first patient in the phase II clinical trial; KW-051 completed the phase II phase I clinical trial; KW-001 completed 48 weeks of treatment and follow-up of all subjects after discontinuation of the phase III clinical trial; KW-020 was the first to pass the generic drug consistency evaluation; GL-004 Obtain a notice of acceptance for drug registration and marketing; KW-059 obtained a notice of approval for drug clinical trials. In 2024, the company will focus on promoting the ongoing hepatitis B phase III clinical trials of interferon alpha-2 injections, and begin product marketing declarations; accelerate phase II clinical progress of the KW-045 (human interferon α2b spray to treat herpetic angina inflammation), KW-051 (develop interferon alpha-2 injections to treat shingles), and KW-059 (interferon alpha-2 injection to treat hepatic epithelioid hemangioendothelioma) programs; focus on phase I clinical research of KW-027, a new class 1 drug. In addition, the company will actively carry out clinical research work on new indications for human interferon α2b vaginal effervescent tablets to provide Jin Shu-xi with more scientific evidence-based medical data and a wider range of applicable groups.
Investment suggestions: The company's R&D investment continues to increase, several clinical research projects are progressing, and innovative results continue to show. We predict that in 2024/2025/2026, the company will achieve revenue of 16.99/21.09 billion yuan and achieve net profit of 1.51/1.94/257 billion yuan, corresponding to PE 31/24/18 times, maintaining the “recommended” rating.
Risk warning: Market competition increases risk; generic drug risk; policy change risk; collection risk; risk of product development falling short of expectations.