Incident: The company released the 2023 report & 2024 quarterly report. In 2023, it achieved revenue of 7.96 billion yuan, +21.3% year on year, and realized net profit of 1.78 billion yuan to mother, -5.4% year on year, after deducting net profit of 1.82 billion yuan, or -0.6% year on year. In the first quarter of 2024, revenue of 2.06 billion yuan was achieved, and net profit attributable to mother was 760 million yuan, +5.4% year-on-year, after deducting net profit of 590 million yuan, or -16.6% year-on-year.
23Q4/24Q1 apparent profit is affected by investment income. The company's revenue for each quarter of 2023 was 20.6/18.4/20.3/2.03 billion yuan (+22.4%/+14.3%/+22.7%/+25.6%), and the overall revenue growth was in line with expectations. The annual revenue from self-employed blood products is 4.3 billion yuan (+15%), which is expected to be mainly driven by products such as hydrochloric acid and fibrin. White revenue of agents was 3.5 billion yuan (+28%). Net profit attributable to mother was 7.2/5.2/5.5/-08 billion yuan (+31.1%/+1.1%/-102.9%), respectively, and the 23Q4 accrued investment loss of 450 million yuan, mainly due to the impact of technology transfer transactions between the associated company GDS and its related parties. The 24Q1 company's revenue declined slightly year-on-year, mainly due to the high base for the same period last year. The company accrued investment income of 270 million yuan (+129%) in the first quarter. The company disposed of 39.96 million shares of Wanfeng Aowei shares through the secondary market in March 2024, thus achieving an investment income of 180 million yuan.
An innovative drug for hemophilia was approved for clinical use. The company's drug under development SR604 injection received the “Drug Clinical Trial Approval Notice” approved and issued by the State Drug Administration on March 5, 2024. SR604 injection is a monoclonal antibody that inhibits the anticoagulant function of human activated protein C. It is intended for the prevention and treatment of bleeding in patients with hemophilia and congenital coagulation factor VII deficiency. Currently, routine preventive treatment for hemophilia at home and abroad is intravenous administration of blood sources or recombinant coagulation factors 2-3 times a week. SR604 is intended to conduct a phase I clinical trial of subcutaneous injection prophylaxis every 4 weeks, with significant drug compliance advantages.
Profit forecast and investment advice: The company's revenue for 2024-2026 is estimated to be 9.11 billion yuan, 10.3 billion yuan, and 11.7 billion yuan, respectively, and net profit to mother is 2.36 billion yuan, 2.7 billion yuan, and 3.03 billion yuan respectively. The company's self-operated blood products business has outstanding profitability. Acting importer Bai enhances its position in the industry and maintains a “buy” rating.
Risk warning: the risk that the amount of pulp collected will not meet expectations; the risk of increased competition in the industry; the risk of exchange rate fluctuations.