Achieving profit for the first time in a single quarter after the pandemic: 2024Q3's revenue was 0.264 billion yuan (+76.1% year over year, same below). The total revenue for the first three quarters was 0.567 billion yuan (+222.9%), after deducting the impact of estimated COVID-19 vaccine returns, an increase of 36.9% over the previous year. In the first three quarters, sales expenses were 0.196 billion yuan (+1.2%), management expenses were 0.117 billion yuan (-37.6%), and R&D expenses were 0.272 billion yuan (-41.0%). Management expenses and R&D expenses were significantly reduced, and the company's cost control effect was remarkable. Furthermore, thanks to continuous optimization of inventory and asset management, the company's asset impairment losses decreased by 0.777 billion yuan year-on-year in the first three quarters, and net loss to mother narrowed to 0.222 billion yuan. Among them, net profit for Q3 was 2.64 million, which was the first quarterly profit since the COVID-19 pandemic. Net loss after deducting non-return to mother was 6.72 million.

Man Haixin's growth rate is impressive. The age extension application is imminent: the company's influenza vaccine product revenue increased rapidly, recording 0.516 billion yuan in the first three quarters, an increase of 39.07% over the previous year. Manhisin will remain the only domestic MCV4 product in the short term, which will help it further strengthen its position in the Chinese market. The application process for extending the age of 4-6 years is also being actively promoted, and it is expected that it will be approved next year. Once approved, it will achieve full coverage of the national immunization program age and further promote sales growth. At the same time, Man Haixin's overseas market development is also progressing steadily. It is progressing smoothly in the Middle East, Southeast Asia, etc., and is expected to start contributing a small amount of revenue next year.

Multiple pipelines are progressing smoothly: The company's many research pipelines are also progressing smoothly. The PCV13i listing application has been accepted by the CDE and on-site inspections have been completed. It is expected that it will be officially approved for listing next year, bringing the company a second growth point. Phase III clinical trials of dTCP for infants and young children have completed the first three basic immunization doses of the subjects, and pre-NDA work will begin next year. Adsorbed tetanus vaccine will also begin pre-NDA work early next year. A number of phase III clinical trials are nearing completion and will continue to provide new growth impetus for the company. PBPV read positive phase Ib clinical data in the first half of the year and is currently actively engaging with potential partners. In October, the company received another $17 million grant from the Gates Foundation to advance the development of a recombinant polio vaccine, and CS-2036 was approved by the Indonesian Drug Administration for phase I/II clinical research. In addition, phase I clinical trials of the recombinant shingles vaccine have been carried out simultaneously in Canada using intramuscular injection and nebulized inhalation. Phase I clinical trials of tDCP for adolescents and adults are nearing completion, and the first phase I clinical trial of Hib has recently completed enrollment.

Target price HK$35.10, purchase rating: We used DCF as the company's valuation. Of these, WACC was 10%, and the sustainable growth was 1%. We calculated that the target price was HK$35.10, with room for an increase of 20.6% from the current price.