Performance is steady, moderate and positive, and profitability continues to improve. The company released its 2024 mid-year report and achieved double-digit growth in both revenue and net profit. In the first half of 2024, the company achieved operating income of 2.15 billion yuan (YoY +11.02%), net profit due to mother 0.402 billion yuan (YoY +27.28%), and net profit of 0.334 billion yuan (YoY +15.19%) after deducting non-return net profit to mother. Among them, Q2 achieved operating income of 1.089 billion yuan (YoY +11.59%), net profit to mother of 0.231 billion yuan (YoY +40.18%), and net profit of 0.177 billion yuan (YoY +15.98%) after deducting net income of 0.177 billion yuan (YoY +15.98%). Both revenue and profit increased month-on-month. The company's performance grew steadily in the first half of the year. The profit side growth rate was higher than that of the revenue side, and profitability continued to increase;
Out-of-hospital and overseas markets have accelerated the growth of finished drugs, and the results of commercialization reforms have been shown. Looking at the company's revenue for the first half of '24, revenue from finished pharmaceuticals was 1.301 billion yuan (+17.13% YoY); revenue from APIs was 0.501 billion yuan (+5.66% YoY); and revenue from medical devices was 0.312 billion yuan (+0.46% YoY). Finished pharmaceuticals were the main driving force for the company's performance growth in the first half of the year. The company is actively expanding the out-of-hospital and overseas markets. In the first half of 2024, the sales revenue of the finished pharmacy market increased by more than 80% year on year, and overseas revenue increased by more than 30% year on year. The marketing model reform brought significant room for growth.
In addition, 10 generic drugs were approved in the first half of '24, and there are more than 20 applications to be approved. The stocks of generic drugs are constantly being enriched, and there is sufficient momentum for future growth;
The admission of didacinib went smoothly, and innovation and transformation were carried out in an orderly manner. The company's first Class 1 drug, Dacinib, was approved for marketing in December 2023 and officially commercialized on March 25, 2024. Currently, more than 30 academic promotion activities of various types have been held, and more than 200 hospitals have been developed. In terms of other innovative drugs, JX11502MA capsules and rehabilitation enteric capsules are undergoing phase II clinical trials, JX2105 capsules have begun phase I clinical trials, and more than 10 research projects are progressing in an orderly manner.
According to the 2024 semi-annual report, we lowered our revenue and gross profit margin and adjusted the 2024-26 net profit forecast to be 7.10/8.33/9.71 billion yuan (the original forecast was 8.93/10.72 billion for 24-25) billion yuan. According to comparable companies, the corresponding target price was 14.76 yuan, and the corresponding target price was 14.76 yuan.
Risk warning
The company's sales fell short of expectations; volume procurement affected the uncertainty of the company's performance; the progress of new drug development and marketing fell short of expectations.