研发项目稳步推进，脑科眼科创新药进展顺利：研发创新方面，公司重点布局眼科、脑科、肿瘤等领域，部分产品明后年有望迎来数据读出。Key points of investment:
Incident: The company released its three-quarter report for 2024, which achieved revenue of 3.41 billion yuan (YoY +13.8%), net profit of 0.97 billion yuan (YoY +18.0%), net profit of 0.96 billion yuan (YoY +19.6%), 2024Q3 achieved revenue of 1.12 billion yuan (YoY +3.6%) in a single quarter, net profit of 2.8 yuan (-6.2% YoY), net profit of 0.28 billion yuan (YoY) -4.0%).
Compassip's revenue increased year-on-year, and R&D investment continued to increase in the first three quarters of 2024: in the first three quarters of 2024, the biopharmaceutical sector achieved revenue of 1.83 billion yuan (+25.4% year over year), proprietary Chinese medicine sector of 1.05 billion yuan (+5.0% year over year), chemical drugs 0.51 billion yuan (-3.4% year over year), and medical device sector of 13.929 million yuan (YoY +104.9%). Among them, the biopharmaceutical sector achieved positive year-on-month growth. Compassip achieved revenue of 0.66 billion yuan in a single quarter in 2024Q3, or +12% year over year, showing good growth potential. The company's gross margin and net margin for the third quarter of 2024 were 90.0% and 24.9%, respectively, and gross margin remained high. The sales expense ratio was 38.5% (-1.8 pct year over year), the management expense ratio was 10.0% (+0.7 pct year over year), the financial expense ratio was -1.3% (-0.01pct year over year), and the R&D expense ratio was 13.4% (+5.2 pct year over year). The rapid increase in R&D expenses in 24Q3 led to pressure on the profit side.
R&D projects are progressing steadily, and innovative neurology ophthalmology drugs are progressing smoothly: in terms of R&D innovation, the company focuses on ophthalmology, neurology, oncology, etc., and some products are expected to be read out next year.
(1) Ophthalmology: The two gene therapy products, KH631 and KH658, are progressing smoothly. Both are in clinical phase I, and there are expectations that they will go overseas in the future. KH902-R10 high-concentration compassic is currently in clinical phase I. Overall, the company's fundus disease products have a complete technical route layout, and may form a differentiated competitive advantage in the future; (2) in the field of neurology: KH110 is currently in clinical phase III for treating AD, KH109 is currently in clinical phase III, and KH607 treatment for depression is in clinical phase I; (3) Oncology: the synthetic biology sector KH617 treats advanced solid tumors in clinical phase I, and KH801 treatment for advanced solid tumors is in clinical phase I.
Profit forecasting and investment advice
We maintained the company's 2024-2026 revenue growth rates of 20%/15%/14%, net profit growth rates of 21%/17%/14%, and EPS of 1.37 yuan, 1.61 yuan, and 1.84 yuan respectively. We believe that the company CompaCip is still in a period of rapid growth, and that the company's innovative drug clinical pipeline is rich and differentiated, maintaining a “buy” rating.
Risk warning
Risk of product sales falling short of expectations, risk of industry policies falling short of expectations, drug R&D innovation, generic drug development and consistency evaluation
