Incident: Recently, the company released its 2023 annual report. In 2023, the company's total revenue was 2,018 billion yuan, up 155.14% year on year. Net profit attributable to parent company owners was 644 million yuan, up 393.54% year on year, and net profit attributable to parent company owners after deducting non-recurring profit and loss was 606 million yuan, up 663.70% year on year.
Core products continue to be released. The company's core product, vometinib mesylate tablets, were included in the scope of national medical insurance reimbursement, further reducing the drug burden for domestic lung cancer patients, improving drug accessibility for domestic lung cancer patients, and effectively promoting the company's sales performance in 2023 to achieve leaps and bounds. The company has set up a professional marketing team of about 900 people, and the marketing network covers the whole country.
R&D investment continues to grow, and the results of ongoing research projects are remarkable. The company actively explores the clinical advantages of vormetinib, thoroughly explores the multi-scenario application of vormetinib, and strives to advance the research process of various research projects: 20 IND for first-line treatment of exon insertion mutation NSCLC was approved; phase Ib clinical trial IND for patients with advanced EGFR or HER2 mutations was approved; compared to first-line treatment of patients with EGFR PACC mutations or EGFR L861Q mutations in phase III clinical trials of patients with locally advanced or metastatic non-small cell lung cancer with EGFR mutations IND approved. The company's self-developed KRAS G12D selective inhibitor AST2169 liposome with global intellectual property rights was approved for clinical trials in March 2024.
Investment advice: The company is an innovative drug company focusing on the field of tumor treatment. It has now built an advantageous R&D pipeline in the field of small molecule targeted drugs for non-small cell lung cancer (NSCLC). We expect the company to achieve operating income of 28.00/33.00/3.80 billion yuan and net profit to mother of 9.18/12.23/1,438 billion yuan in 2024-2026. The corresponding PE was 23.17/17.39/14.78 times, respectively, maintaining 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 dependence on a single product, risk of market competition, etc.