公司回购彰显信心。之前公司2 月审议通过了《关于回购公司股份方案的议案》，公司将采用集中竞价交易的方式从二级市场回购公司A 股股份，本次回购股份的资金总额将不低于人民币60,000 万元（含），且不超过人民币120,000 万元（含）；回购价格不超过157元/股。2024 年6 月召开2023 年度股东大会，审议通过了2023 年年度权益分派方案，公司在回购股份期内实施了派息、送股、资本公积金转增股本、股票拆细、缩股、配股及其他除权除息事项，自股价除权除息之日起，按照中国证监会及深圳证券交易所的相关规定相应调整回购股份价格并及时披露。调整后的回购价格上限为155.27 元/股，自2024年6 月28 日（除权除息日）起生效。此次回购彰显公司经营信心。Incidents:
On October 8, 2024, Gloria Ying announced the progress of share repurchase. As of September 30, 2024, the total number of shares repurchased by the company through centralized bidding through a special securities repurchase account was 12,300,701 shares, accounting for 3.5976% of the company's total A share capital. The highest transaction price was 102.00 yuan/share, and the minimum transaction price was 71.65 yuan/share. The total amount paid was 999,644,601.56 yuan (excluding transaction fees).
Key points of investment:
The company's buyback shows confidence. Previously, the company reviewed and passed the “Proposal on the Company's Share Repurchase Plan” in February. The company will use centralized bidding transactions to repurchase the company's A shares from the secondary market. The total capital for the repurchase of shares will not be less than RMB 600 million (inclusive), and not more than RMB 1200 million (inclusive); the repurchase price will not exceed RMB 157 per share. The 2023 Annual General Meeting of Shareholders was held in June 2024 to review and approve the 2023 equity distribution plan. The company implemented dividends, share transfers, capital reserve capital transfers, stock splitting, stock reduction, allotment and other exemption matters during the share repurchase period. From the date of stock price exemption, the repurchased share price was adjusted accordingly and promptly disclosed in accordance with the relevant regulations of the China Securities Regulatory Commission and the Shenzhen Stock Exchange. The upper limit of the adjusted repurchase price is 155.27 yuan/share, effective from June 28, 2024 (excluding dividend date). This buyback shows the company's confidence in operating.
Excluding the impact of large orders, the small molecule business grew steadily. According to the company's semi-annual report, the company's small molecule business achieved revenue of 2.195 billion yuan in the first half of the year, a year-on-year increase of 2.49% after excluding the impact of large orders, and the gross profit margin of the small molecule business in the first half of the year was 47.19%.
The company delivered 43 commercialization projects, added 9 additional commercialization projects, and achieved revenue of 1.396 billion yuan, an increase of 8.82% over the previous year after excluding the impact of large orders.
New orders were plentiful, and improvements continued from month to month. According to the company's semi-annual report, the company's new orders increased by more than 20% year on year, and there was a significant month-on-month increase in the second quarter compared to the first quarter. Among them, the growth rate of customer orders from the European and American markets exceeded the company's overall order growth rate. As of the disclosure date of the semi-annual report, excluding the confirmed operating income of the semi-annual report, the total number of orders in the company was 0.97 billion US dollars.
Profit forecasting and investment ratings. Affected by the slump in global investment and financing, R&D demand fluctuated. We lowered the company's 24-year net profit forecast to be 1.038 billion yuan (original value 3.395 billion yuan), and added 25-26 net profit forecasts to 1.248 and 1.503 billion yuan, corresponding PE was 29, 24, and 20 times respectively. We selected Kanglong Chemical, Tiger Pharmaceuticals, and Pharmaceutical Stone Technology as comparable companies. The average PE is 35 times. Gloria Ying still has room to rise, so we maintain a “gain” rating.
Risk warning: Drug R&D investment has been drastically reduced, downstream product sales fall short of expectations, company production capacity investment falls short of expectations, exchange rate fluctuations, etc.
