Recently, the company released its 2024/1 quarterly report. In Q1 2024, the company achieved sales of 92.894 million yuan, a year-on-year decrease of 17.52%. This is mainly due to a decrease of 38.21441 million yuan in revenue from the company's crude human protein products business compared to the same period of the previous year, and an increase of 15.4809 million yuan in revenue from the new HIV drug business compared to the same period last year. Net profit attributable to shareholders of listed companies - RMB 13.6069 million, and net profit attributable to shareholders of listed companies after deducting non-recurring profit and loss - RMB 17.3797 million.

Make every effort to promote the commercialization of innovative drugs at home and abroad. After the layout and adjustment of the commercialization of new HIV drugs in 2023, the company has established a new HIV drug commercialization operation system with the characteristics of the company and products. Currently, many measures are being taken together to fully promote the commercialization of innovative HIV drugs. In the first quarter of 2024, the total sales revenue of new HIV drugs was 35.712 million yuan, an increase of 76.52% over the previous year.

Actively promote the progress of the research pipeline. Positive results were obtained in the 96-week phase III clinical trial of enomide tablets. Preliminary results showed that the percentage of virological suppression (<50 copies/mL) at 96 weeks of treatment was 96.6% (368/381), which is higher than the 96-week historical study data of imported similar products. At the same time, there was a positive improvement in the patient's body weight and LDL cholesterol indicators after switching medication. Furthermore, real-world studies of the ainovirin-containing regimen have made positive progress, providing more evidence-based medical evidence for their safety and efficacy. Finally, the phase I clinical study of the integrase inhibitor ACC017 tablets with a new chemical structure has basically completed a single-dose climbing test. Preliminary results showed that participants in all dosage groups were safe, with no adverse events of grade 2 or above; the level of oral absorption and exposure to the drug was good, which can support administration once a day.

Investment advice: The company is a pioneer in new anti-HIV drugs, and two new anti-HIV drugs have been approved for marketing. We expect the company to achieve operating income of 5.66/8.12/1,094 million yuan in 2024-2026, corresponding to PE69.64/36.15/20.07X, and maintain the “gain” rating.

Risk warning: risk of changes in industry policies, risk of new drug development, risk of uncertain marketing of products under development, risk of poor progress in internationalization, risk of market competition, etc.