The 2024H1 profit side achieved leapfrog growth, and the rapid expansion of the optional product business opened up room for growth. 2024H1 achieved revenue of 0.832 billion yuan (+107.47%, the following are all year-on-year scales); net profit to mother of 0.227 billion yuan (+442.77%); net profit of 0.229 billion yuan (+433.45%) after deducting non-attributable net profit. Gross profit margin 67.32% (+9.73pct); net profit margin 27.87% (+17.93 pct). Looking at Q2 alone, the company achieved revenue of 0.476 billion yuan (+146.82%); net profit due to mother 0.161 billion yuan (+671.78%); net profit not attributable to mother of 0.164 billion yuan (+735.89%). Gross profit margin 67.36% (+7.99 pct); net profit margin 35.15% (+24.27 pct). Split by sub-business, the optional products business achieved revenue of 0.545 billion yuan (+119.76%), of which the API business achieved revenue of 0.377 billion yuan and the formulation business achieved revenue of 0.168 billion yuan. The CDMO business achieved revenue of 0.286 billion yuan (+88.16%). In view of the rapid increase in downstream demand and the continued expansion of the company's optional product business, we raised the company's profit forecast for 2024-2026. The company's net profit for 2024-2026 is 0.398/0.525/0.724 billion yuan (originally estimated 0.247/0.327/0.435 billion yuan), EPS is 1.81/2.39/3.30 yuan, and the PE corresponding to the current stock price is 34.0/25.7/18.6 times, maintaining a “buy” rating.
Actively explore the global market, and have signed major strategic cooperation agreements in many places. 2024H1 has signed a number of GLP-1 API cooperation agreements in Europe, North America, South America, India and other countries and regions, including liraglutide, simeglutide, and telpotide, to guarantee rapid future growth. At the same time, the company has expanded the first innovative animal peptide CDMO project in the North American market, signed and promoted multiple oligonucleotide CDMO services in the Indian market to provide high-quality peptide and oligonucleotide API products and outsourcing services to customers around the world.
The construction of new production capacity continues to be promoted. The 10-ton peptide production capacity is expected to land ahead of schedule. The company will continue to push forward the construction of peptide production capacity. Currently, the production capacity of peptide APIs has reached the ton scale. The newly built 601 peptide workshop was capped ahead of schedule, and installation and commissioning is expected to be completed by the end of 2024; the newly built 602 peptide workshop is expected to complete construction, installation and commissioning in the first half of 2025. At that time, the total peptide production capacity will reach 10 tons/year. The hard capsule production line in the oral solid formulation workshop passed the drug GMP compliance inspection in July, and the annual production capacity of formulations such as oseltamivir phosphate capsules reached 4.5 billion capsules. Adequate production capacity ensures the high growth of the company's various businesses in the future.
Risk warning: changes in pharmaceutical regulatory policies, exchange rate fluctuations, loss of core company members, etc.