On June 18th, Ge Long Hui reported that Orient's research reports indicated that the release of procurement effects led to a new round of growth as bidding volume and price both rose. As a leading domestic third-generation insulin company, Gan and Lee Pharmaceuticals (603087.SH) have achieved excellent performance growth in the long term. In 2023, the company achieved revenue of 2.61 billion yuan (+52%) and net income attributable to the parent company of 340 million yuan, turning losses into profits. With the impact of the first round of national procurement of insulin since 2022 and the renewal of procurement bids in the second round in 2024, the growth certainty of the company's domestic business in the 3-year procurement cycle to come has been strengthened. In this round of procurement renewal, the volume and price of the company's products both increased, with the total procurement demand increasing by 151% compared to the previous round of procurement and the average selected price increasing by 31%. Profitability is expected to improve. In terms of promoting in the European and American markets, the company reached a cooperation with Sandoz AG, a similar pharmaceutical giant overseas, in 2018. The European and American markets have ample space and a relatively outstanding pattern, and with the completion of insulin price adjustments in the US market, the company is expected to benefit significantly. We are bullish on the growth certainty of the company's domestic base after the continuation of procurement bids, and both the product going global and innovative layout also have the potential for mid- to long-term growth. We are giving the company a 32 times PE for 2025, corresponding to a target price of 61.12 yuan and an initial coverage rating of "buy".