分板块看，2024H1 营收中 1）药品制剂板块收入10.86 亿元（YoY+7.52%）；2）原料药板块具备产品多、系列全、低成本的优势，实现销售收入1.14亿元（YoY+86.68%）；3）药用辅料板块收入0.92 亿元（YoY-1.69%）；4）植物提取物板块收入0.50 亿元（YoY+48.50%）。Incidents:
The company released its 2024 semi-annual report. 2024H1 achieved revenue of 1.366 billion yuan (YoY +12.19%); net profit due to mother of 0.284 billion yuan (YoY +43.77%); net profit of 0.255 billion yuan (YoY +43.24%) after deducting net profit from the mother. The profit side growth rate far exceeded the revenue growth rate, and profitability was outstanding. 2024Q2 achieved revenue of 0.775 billion yuan (YoY +8.31%); net profit due to mother 0.158 billion yuan (YoY +31.24%); net profit after deducting non-attributable net profit of 0.149 billion yuan (YoY +36.52%) in a single quarter.
The pharmaceutical formulation sector is growing steadily, and the API sector is showing impressive revenue
By sector, of the 2024H1 revenue, 1) the pharmaceutical preparation sector has revenue of 1.086 billion yuan (YoY +7.52%); 2) the API segment has the advantages of many products, a complete range, and low cost, achieving sales revenue of 0.114 billion yuan (YoY +86.68%); 3) the pharmaceutical excipients segment's revenue is 0.092 billion yuan (YoY -1.69%); 4) the plant extract sector's revenue is 0.05 billion yuan (YoY +48.50%).
The sales expense ratio is expected to continue to decline, and profitability will steadily increase
2024H1's gross margin was 73.14% (YOY-4.60pct); net margin was 20.80% (YOY+4.57pct). With the in-depth implementation of national and provincial procurement, the reduction in investment in topical formulation products entering maturity, and the company's transformation into a semi-proprietary model, and increasing the promotion of the OTC market, etc., the 2024H1 sales cost rate dropped significantly to 39.98% (YOY-8.74pct), and is expected to decrease further; the management fee rate is 2.99% (YOY-0.61 pct); the financial expense ratio is 0.56%, (YOY+0.56pct), mainly due to interest on convertible bonds; the R&D expense ratio is 8.34% (YOY+0.87pct).
The company is deeply involved in the transdermal drug delivery circuit, increasing the scale of the industry and increasing the company's product richness or achieving long-term high growth
The company insists on “transdermal drug delivery formulations” as the core, and its topical paste market continues to expand. The sales scale reached 20.364 billion yuan (+10.67%) in 2023. Among them, chemical paste is growing faster than proprietary Chinese medicine paste, and its share has increased to 33.94%, with broad prospects. The company is the company with the most extensive line layout of transdermal drug delivery lines in China. It has been approved to launch 3 products (loxoprofen sodium gel paste, ketoprofen gel patch, ketoprofen gel), and is developing more than 20 topical formulation products, 7 of which have already been reported for production; and through continuous R&D and process optimization, the company has formed a high product technical barrier. With the subsequent expansion of the product matrix, the company's operations are expected to achieve long-term high-growth development.
Profit forecasting
We forecast the company's revenue for 2024-2026 to be 3.11/3.587/4.182 billion yuan, and net profit to mother of 0.513/0.675/0.899 billion yuan, respectively. 2024-2026 corresponds to the current market capitalization of 21/16/12XPE, maintaining a “buy” rating.
Risk warning: R&D risk; risk of worsening competition; risk of policy fluctuation; other risks such as overdue accounts receivable and loss of R&D talent