New anti-AIDS drugs continued to be released, and innovation and transformation entered the harvest period. Maintaining a “buy” rating of 2024H1, the company achieved operating income of 0.181 billion yuan (-24.16% year over year, not marked as a year-on-year scale). Among them, the new HIV drug achieved sales revenue of about 81.6339 million yuan, an increase of 148.68% year on year; net profit due to mother -0.045 billion yuan (-373.28%); net profit not attributable to mother was 0.053 billion yuan (-127.44%). The company's 2024H1 gross profit margin was 48.75% (+0.76pct); net margin was -25.09% (-21.07pct). 2024H1 Company Sales Expense Ratio 31.86% (+10.56pct); Management Expense Ratio 25.16% (+4.21pct); R&D Expense Ratio 25.68% (+13.22pct).
We are optimistic about the company's market advantage in the AIDS field and maintain the 2024-2026 net profit forecast. It is estimated to be -0.035, 0.01, and 0.058 billion yuan respectively, EPS is -0.08, 0.02, and 0.14 yuan/share, respectively. The current stock price corresponding to PE is -192.3, 699.8, and 118.3 times, respectively, maintaining a “buy” rating.
We are making every effort to promote the commercialization of new HIV drugs, and the business growth momentum is strong. 2024H1 continues to strengthen the commercial operation of HIV and help promote specialized products through close collaboration in medicine, marketing, and sales. The share of HIV innovative drug business revenue climbed to 45% in 2024H1. Combining product positioning, the company focuses on HIV-infected people with blood fat and weight problems and high quality of life needs; participated in many international and national academic conferences to promote the company's brand and product advantages based on evidence-based data to further enhance brand influence and industry competitiveness; organize and participate in special academic market meetings to improve the quality of comprehensive AIDS prevention and treatment quality and medical staff; continuously optimize and supplement regional marketing teams, strengthen results orientation, and carry out differentiated sales to continuously improve team execution and combat effectiveness.
A number of cores are progressing smoothly in the research pipeline, and positive results have been achieved
2024H1 invested 48.0772 million yuan in R&D, accounting for 26.55%, maintaining a high level of R&D investment. The phase I clinical trial of the new integrase inhibitor ACC017 tablets is progressing smoothly; the 96-week study of the phase III clinical trial of enomil tablets achieved positive results. The conversion of jiefukang to compound can significantly improve indicators such as body weight and low density lipoprotein cholesterol in people treated to HIV, and can maintain high levels of curative efficacy; several real-world research results on ainovirin-containing solutions have been published to help the company promote commercialization of new HIV drugs; the R&D pipeline for advanced anti-HIV generic drugs has been actively promoted.
Risk warning: changes in industry policies, risks of sales of new HIV drugs falling short of expectations, and changes in the competitive landscape.