Incident: Recently, the company released its 2024 semi-annual report. 2024H1 achieved revenue of 0.181 billion yuan, and the new HIV drug business revenue increased by 48.8073 million yuan over the same period of the previous year; net profit to mother - 0.045 billion yuan; net profit after deducting non-return to mother - 0.053 billion yuan.

Continue to strengthen the commercialization of HIV. In the domestic market, innovative business models have determined the marketing idea of “medical leadership, market drive, and sales implementation”, and established an innovative marketing model of self-operation+investment promotion. In the first half of 2024, the total sales revenue of new HIV drugs was about 81.6339 million yuan, an increase of 148.68% over the previous year. As of June 30, 2024, with the exception of Tibet, Hong Kong, Macao and Taiwan, AIDS patients in other provinces, autonomous regions, and municipalities directly under the Central Government had already benefited from the enovelin program, and hospital coverage was steadily expanding. In terms of international business, the company is making every effort to promote the commercialization of innovative anti-AIDS products in overseas markets, and is actively carrying out product registration related work in key countries and regions such as Africa and Southeast Asia. At present, the company has established a strategic partnership with Fidson Pharmaceutical (Fidson), a listed pharmaceutical company in Nigeria to jointly explore the market for innovative anti-AIDS products in Nigeria and even West Africa; it has also cooperated and negotiated with organizations such as the African Public Health Foundation and internationally renowned experts in the field of HIV treatment to accelerate the entry of the company's innovative anti-AIDS products into key overseas markets.

Continue to solidly promote the publication of academic papers, and gradually develop international exchanges and cooperation. In June 2024, the company brought a number of clinical studies to the 9th Asia-Pacific Conference on AIDS and Co-infections held in Hong Kong, China; the 25th International AIDS Conference opened in Munich, Germany on July 22. The company showed global experts and scholars the latest results of a phase III clinical study (SPRINT study) of the self-developed new anti-AIDS drug Enomitide (SPRINT study) and a population pharmacokinetic study of enovelin. Eddy Pharmaceuticals will join hands with clinical research partners to report the results of 5 clinical studies in the Anovelin and Enomitide series during the 2024 American Society for Infectious Diseases Week (IDWeek2024).

Investment advice: The company continues to cultivate an anti-HIV advantage circuit. We expect the company to achieve revenue of 0.566/0.812/1.094 billion in 2024-2026, maintaining an “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 poor progress in internationalization, risk of market competition, etc.