Good cost control and steady growth in net profit attributable to parent, maintaining "Buy" rating
In 2025H1, the company achieved revenue of 4.288 billion yuan (down 1.91% year-over-year, all comparisons below are on a year-over-year basis); net profit attributable to parent was 775 million yuan (up 16.97%); non-GAAP net profit attributable to parent was 640 million yuan (down 12.87%). In terms of profitability, 2025H1 gross margin was 67.37% (down 0.08pct), and net margin was 18.42% (up 3.48pct). From the expense perspective, 2025H1 sales expense ratio was 35.56% (up 1.95pct); administrative expense ratio was 3.49% (up 0.03pct); R&D expense ratio was 8.00% (down 0.47pct); financial expense ratio was -0.18% (down 0.15pct). We are optimistic about the potential growth opportunities brought by the company's continuous advancement of innovative R&D pipeline, maintaining our forecast for net profit attributable to parent for 2025-2027 at 1.183/1.306/1.455 billion yuan, with EPS of 0.79/0.87/0.97 yuan per share. At current stock price, the corresponding PE ratios are 20.4/18.5/16.6 times respectively, maintaining "Buy" rating.
Pharmaceutical manufacturing segment revenue slightly declined, with positive sales performance across multiple product areas
By product segment, pharmaceutical manufacturing revenue was 3.879 billion yuan (down 0.45%), and pharmaceutical commercial revenue was 386 million yuan (down 14.88%). By therapeutic area, cardiovascular and metabolic revenue was 2.11 billion yuan (down 2.98%), neurological/psychiatric revenue was 767 million yuan (up 0.56%), digestive revenue was 521 million yuan (up 8.58%), and other categories revenue was 480 million yuan (up 0.42%). Overall, pharmaceutical sales showed relatively steady growth momentum.
Innovation strategy focused on "disease tree" and "product tree", optimizing R&D layout to enhance competitiveness
The company focuses on innovation strategies centered around "disease tree" and "product tree", concentrating on cardiovascular and metabolic, neurological/psychiatric, and digestive disease areas, optimizing product R&D layout. In cardiovascular and metabolic areas, there are 26 projects under research (10 innovative drugs), among which Qingshu Granules Phase III and Qishen Yiqi Dropping Pills for diabetic kidney disease/chronic heart failure Phase II have completed enrollment of all subjects; in neurological/psychiatric areas, there are 16 pipeline projects under research (7 innovative drugs), among which the Class 1.1 innovative drug JS1-1-01 has received clinical approval in both China and the US (domestic Phase II clinical research has been completed), Puyouke for acute ischemic stroke indication has completed CDE review meeting, and adipose mesenchymal stromal cell injection is conducting Phase I clinical research; in digestive areas, there are 13 pipeline projects under research (6 innovative drugs), among which B1344 injection for MASH has entered clinical Phase Ib, PD-L1/VEGF dual antibody for solid tumor indication Phase IIa and colorectal cancer indication Phase IIb clinical trials are proceeding smoothly with enrollment.
Risk Warning: Policy change risks, slower-than-expected product R&D progress, raw material price volatility risks, etc.
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