Financial Performance - The group's total revenue for the year ending December 31, 2024, was RMB 6.635 billion, an increase of 0.4% compared to RMB 6.608 billion in 2023[4]. - The profit attributable to equity shareholders was RMB 733 million, an increase of 2.6% from RMB 715 million in 2023[4]. - Adjusted profit attributable to equity shareholders was RMB 1.018 billion, up 41.6% from RMB 719 million in 2023[4]. - Revenue from innovative pharmaceuticals reached RMB 4.928 billion, accounting for 74.3% of total revenue, up 3.6% from RMB 4.756 billion in 2023[4]. - Revenue from the neuroscience segment was RMB 2.174 billion, representing 32.8% of total revenue, a growth of 10.4% from RMB 1.969 billion in 2023[4]. - Revenue from the autoimmune segment was RMB 1.811 billion, making up 27.3% of total revenue, with a significant increase of 28.0% from RMB 1.415 billion in 2023[107]. - Revenue from the oncology segment decreased by 17.6% to RMB 1.298 billion, which accounted for 19.6% of total revenue, down from RMB 1.576 billion in 2023[107]. - Total R&D investment for the year was RMB 1.523 billion, a decrease of 22.3% from RMB 1.960 billion in 2023, representing 23.0% of revenue, down from 29.7% in 2023[109]. - The company achieved a revenue of RMB 6.635 billion for the year ending December 31, 2024, representing a growth of 0.4% compared to RMB 6.608 billion in 2023[107]. - Gross profit for 2024 was RMB 5,324,579 thousand, up from RMB 4,984,153 thousand in 2023, indicating a growth of approximately 6.8%[154]. - Net profit for the year was RMB 733,165 thousand, slightly up from RMB 713,950 thousand in 2023, showing a growth of about 2.0%[156]. Research and Development - The R&D pipeline has three new drug molecules in Phase III clinical trials, with multiple products entering critical POC data phases[6]. - The company has established over 60 innovative drug varieties in its pipeline, with 16 innovative drugs undergoing registration clinical trials[16]. - The company is developing five innovative drugs simultaneously in China and the US, including SIM0501, SIM0500, SIM0508, and SIM0505[9]. - The company has approximately 40 preclinical candidate drugs, providing a strong and diversified product pipeline for sustainable long-term growth[101]. - The IND for SIM0506 is expected to commence clinical trials in April 2024 for advanced solid tumors with KRAS mutations[103]. - The IND for SIM0686 was formally accepted by CDE in January 2025, targeting advanced malignancies such as gastric and lung cancer[105]. - The company has made significant progress in production capacity and efficiency, with a new production base completed in just 12 months[13]. - The company has approximately 974 R&D personnel, including about 174 PhDs and 525 Master's degree holders, supporting its innovative drug development capabilities[17]. Product Development and Commercialization - The group has entered the commercialization phase with eight innovative drugs, including two newly approved products in China[5]. - The company achieved a 45% year-on-year increase in overseas licensing transactions for innovative drugs, surpassing $15 billion in 2024[14]. - The company has eight innovative drugs approved for sale, with over 45 products included in the National Reimbursement Drug List (NRDL)[17]. - The company has entered into exclusive commercialization agreements for several products, including TGRX-326 and SIM0500, enhancing its product layout in the oncology field[10]. - The product Xianbixin® (Idaravone and Right-angled Alcohol Injection) holds approximately 28% market share in the stroke injection market, covering about 1.31 million new patients and over 5,500 medical institutions as of December 31, 2024[24]. - Xianbixin® sublingual tablets received FDA "Breakthrough Therapy" designation in August 2024, marking it as the first innovative drug in the global stroke treatment field to achieve this status[29]. - The product Endu® (Recombinant Human Vascular Endothelial Inhibitor Injection) has been included in multiple clinical practice guidelines for advanced NSCLC since 2017 and is currently being explored for new indications in malignant pleural effusion[33]. - Envida® (Envafolimab Injection) is the world's first subcutaneously administered PD-(L)1 antibody, offering advantages such as shorter administration time and good safety profile[38]. Financial Position and Investments - As of December 31, 2024, the net cash generated from operating activities was RMB 1.391 billion, a significant increase from RMB 0.151 billion in the previous year[116]. - The group had cash and cash equivalents of RMB 1.943 billion as of December 31, 2024, compared to RMB 2.007 billion on December 31, 2023[116]. - The current ratio was 200.4% as of December 31, 2024, down from 209.9% a year earlier, while the debt-to-asset ratio increased to 38.6% from 33.5%[117]. - The group completed the acquisition of Nanjing Baijiahui Innovative Medical Technology Co., Ltd. for RMB 42.31 million on January 31, 2024[125]. - The group plans to raise RMB 970 million through a capital increase, which will result in approximately 11.45% of the enlarged issued share capital being allocated to investors[126]. - The company has a net amount of HKD 3,513.09 million from its initial public offering and over-allotment, with 60% allocated to strategic development in key therapeutic areas[149]. - As of December 31, 2024, HKD 2,107.85 million (60%) of the net proceeds has been allocated to ongoing research and development of selected products, with an expected full utilization by 2027[150]. Corporate Governance and Compliance - The company has complied with the Corporate Governance Code during the reporting period[138]. - The audit committee, consisting of three independent non-executive directors, has reviewed the financial reporting process and internal control systems[142]. - The company’s financial reports for the year ending December 31, 2024, have been prepared in accordance with applicable accounting standards and regulations[143]. - The chairman and CEO positions are held by the same individual, which the board believes ensures consistent leadership and timely decision-making[139]. - The annual general meeting of shareholders is scheduled for June 13, 2025[145]. Market and Competitive Position - The company received an A rating in the latest ESG assessment by MSCI, indicating a leading position in the Chinese pharmaceutical industry[12]. - The company is focused on therapeutic areas such as neuroscience, oncology, autoimmune diseases, and anti-infection, aiming for high-quality development[16]. - The group aims to enhance its global layout focusing on high-value, differentiated pipelines and accelerate the conversion of key clinical stage products[20]. - The company’s share repurchase reflects confidence in its business outlook and aims to create value for shareholders[135]. - The company’s financial resources are deemed sufficient to maintain a healthy financial position while conducting share repurchases[135].

Summary of the Conference Call for Xiansheng Pharmaceutical Industry Overview - Xiansheng Pharmaceutical operates in the field of neuro-specialty pharmaceuticals and is recognized as a leading enterprise in this sector [3][4]. Core Products and Market Performance - Key products include: - **Xianbixin Injection**: Launched in 2020, it has experienced rapid sales growth with a compound annual growth rate (CAGR) of nearly 750% from 2020 to 2024 [3][4]. - **Idaravone R-enantioform Sublingual Tablets**: Approved in December 2024, it completes a comprehensive vascular therapy for stroke treatment, expected to be a significant drug following Idaravone [3][4]. - A new generation of non-controlled insomnia medication is set to be launched in Hong Kong in May 2024 and anticipated for domestic release in 2025, showing optimistic market prospects [3][4]. Innovations in Oncology - Major oncology products include: - **Koserra** and **Anlitai**: Both have been included in the national medical insurance directory and are expected to be promoted for hospital use this year [5][6]. - A business development (BD) agreement with Aibowei, with a total contract value of up to 1.055 billion yuan, indicates strong R&D capabilities and future project potential [5][6]. R&D Investment and Financial Impact - R&D investments have significantly increased, totaling 6.42 billion yuan from 2020 to mid-2023. The proportion of innovative revenue rose from 21.4% in 2017 to 72% last year, leading to substantial overall performance improvement [7][8]. Clinical Efficacy and Market Outlook - **Idaravone R-enantioform** shows superior clinical efficacy compared to standard Idaravone, with significant improvements in the ROCK scale scores. It has received Breakthrough Therapy Designation (BTD) in the U.S., indicating potential for international market expansion [8][9]. - **Aideqing**: An anti-inflammatory and anti-rheumatic biological agent, ranked second in hospital use, with sales exceeding 900 million yuan last year, expected to maintain rapid growth [9]. Emerging Therapies in Oncology - The company is focusing on **Sanze Su**, a new generation recombinant humanized VEGF monoclonal antibody, which may provide breakthroughs in cancer treatment. Continuous efforts are being made to expand the oncology treatment portfolio through additional BD projects [10]. Clinical Trials and New Drug Development - A phase III clinical trial achieved its primary endpoint in January 2024, showing a significant progression-free survival (PFS) of 5.49 months. A New Drug Application (NDA) was submitted in March 2024, with approval expected in 2025 [11][12]. Pipeline Products of Interest - The pipeline includes several noteworthy products, such as **Enzeshushu** and a self-developed monoclonal antibody in collaboration with Aibowei, currently undergoing phase I trials in the U.S. and China [12]. Focus on Neurology - A new generation insomnia drug is a key focus for the company, expected to be approved in 2025. The market for such drugs is promising, with significant sales growth observed in similar products [13][14]. Future Development Plans - The company plans to continue advancing clinical R&D and explore new collaboration opportunities while closely monitoring upcoming product approvals to ensure market entry and rapid growth [15].

Core Viewpoint - The announcement highlights the acceptance of the new drug application for Madaxanovir tablets by the National Medical Products Administration (NMPA) in China, indicating a significant step forward in the treatment of influenza for adults and adolescents without complications [1][2]. Group 1: Drug Development - The collaboration between the company and Jiaxing Antikang Biotechnology Co., Ltd. focuses on the development of Madaxanovir, an antiviral drug aimed at treating influenza [1]. - Madaxanovir is characterized as an inhibitor of the polymerase acidic protein (PA) endonuclease activity, which is crucial for the replication of the influenza virus [2]. Group 2: Drug Advantages - Madaxanovir presents several advantages, including no central nervous system side effects, oral absorption unaffected by food, and a higher safety dosage compared to existing treatments [2]. - The drug requires only a single oral dose to effectively block the replication of the influenza virus within 24 hours, potentially offering significant convenience for patients, including children [2].

Investment Rating - The report assigns a "Buy" rating for the company for the first time [1][5]. Core Insights - The company has a diversified product matrix focusing on neurology, oncology, and autoimmune diseases, with a significant increase in the proportion of revenue from new drugs, which is expected to continue growing [2][3]. - The company has achieved important milestones in its innovative drug pipeline, including several approvals and negotiations for inclusion in national insurance [2][3]. - The launch of the sublingual formulation of a key drug is anticipated to meet the growing demand for outpatient treatment of ischemic stroke, enhancing the company's market position [2][3][4]. Summary by Sections Company Overview - The company, established in 1995 and listed in 2020, focuses on innovative drug development in neurology, oncology, and autoimmune diseases, with a solid commercial foundation and ongoing product innovation [10][15]. Financial Performance - Revenue projections for 2024-2026 are estimated at 66.36 billion, 76.90 billion, and 86.54 billion CNY, with expected growth rates of 0%, 16%, and 13% respectively [5][18]. - The net profit forecast for the same period is 10.37 billion, 11.93 billion, and 13.36 billion CNY, with growth rates of 45%, 15%, and 12% respectively [5][18]. Product Pipeline and Market Strategy - The company has successfully increased the proportion of revenue from innovative drugs, reaching 72% in 2023, and is expected to further enhance this with upcoming product approvals [2][15]. - The approval of the sublingual formulation of a key drug is expected to create synergies with existing products and address outpatient treatment needs [2][34]. - The company has established a strong commercial system with a wide reach across various medical institutions in China, supporting its product distribution and market penetration [26][30]. Research and Development - The company has a robust pipeline of innovative drugs, including several in late-stage clinical trials, and has successfully licensed out its research products internationally, indicating strong innovation capabilities [3][4][30]. - The company is actively pursuing international clinical research for its innovative drugs, reflecting its strategic intent to expand globally [2][3].

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company is positioned for sustained growth due to a concentrated release of innovative drugs [1] - The company has established a strong leadership position in the neuro-specialty pharmaceutical sector [3][15] - The innovative drug revenue share is rapidly increasing, indicating a potential turning point in performance [20] Summary by Sections Innovative Drug Growth - The company has launched 8 innovative drugs, with several included in the national medical insurance directory, which is expected to drive future growth [16] - The innovative drug revenue CAGR from 2017 to 2023 is 33.8%, with the share rising from 21.4% in 2017 to 72.0% in 2023 [20] Product Synergy and Market Position - The company has a diversified product portfolio across oncology, neurology, and autoimmune diseases, leveraging product synergies to maximize market potential [23] - The recent approval of the sublingual formulation of a key drug is expected to enhance patient compliance and treatment outcomes for acute ischemic stroke [29][31] Pipeline and Differentiation - The company is focusing on differentiated pipeline strategies, with a strong emphasis on collaborative development in oncology and neurology [46] - The TCE tri-antibody SIM0500 is currently in clinical trials and has received significant financial backing from AbbVie [53] Financial Forecast and Valuation - Projected revenues for 2024-2026 are 67.76 billion, 76.54 billion, and 87.11 billion CNY, with corresponding net profits of 9.73 billion, 12.07 billion, and 15.04 billion CNY [10] - The company is expected to maintain a low valuation compared to peers, with a potential for valuation recovery as performance improves [10]

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company is positioned for sustained growth due to a concentrated pipeline of innovative drugs that are set to be launched [1][10] - The company has established itself as a leader in specialized pharmaceuticals, particularly in neurology, oncology, and autoimmune diseases [15][23] Summary by Sections Innovative Drug Pipeline - The company has successfully launched 8 innovative drugs, with several included in the national medical insurance directory, which is expected to drive future growth [16][20] - The innovative drug revenue has significantly increased, with a CAGR of 33.8% from 2017 to 2023, rising from 21.4% of total revenue in 2017 to 72.0% in 2023 [20][21] Neurology Products - The newly approved sublingual formulation of Xianbixin is expected to improve adherence among acute ischemic stroke patients, complementing the existing injectable formulation [4][29] - Xianbixin has shown a CAGR of 749.9% from 2020 to 2023, indicating strong market potential [31] Oncology Products - Multiple oncology drugs have been approved, including Envidah and Koseira, which have been included in the national medical insurance directory, suggesting potential for significant market uptake [8][44] - Envidah is recommended in various clinical guidelines for the treatment of advanced non-small cell lung cancer (NSCLC) [41][42] Autoimmune Products - Aidesin, a key product for rheumatoid arthritis, has shown a CAGR of 39.9% from 2016 to 2023, establishing itself as a leading treatment option [36][40] Financial Projections - Revenue projections for 2024-2026 are estimated at 67.76 billion, 76.54 billion, and 87.11 billion CNY, with corresponding net profits of 9.73 billion, 12.07 billion, and 15.04 billion CNY [10][12] - The company is expected to maintain a low valuation compared to peers, with a projected PE ratio decreasing from 16 to 10 over the same period [10][12]

Investment Rating - The report assigns a **Buy** rating to Simcere Pharmaceutical (2096 HK) with a target price of HK$10.00, representing a potential upside of 53.2% from the current price of HK$6.53 [5] Core Views - Simcere Pharmaceutical has entered into a licensing agreement with AbbVie for SIM0500, a BCMA x GPRC5D x CD3 trispecific antibody, with a total potential deal value exceeding $1.055 billion [1] - SIM0500 is currently in Phase I clinical trials for relapsed/refractory multiple myeloma (MM), a market with significant potential as the global MM treatment market is projected to reach $26.7 billion by 2024 [1] - The deal represents the second and largest out-licensing transaction in Simcere's history, following the 2022 licensing of SIM0278 to Almirall [1] - SIM0500 also shows potential in autoimmune diseases due to its ability to target B cells expressing BCMA and GPRC5D, with other BCMA-targeting drugs already demonstrating efficacy in conditions like Sjögren's syndrome and rheumatoid arthritis [1] - The TCE platform has been validated through this deal, with three additional molecules targeting AML, CLL/DLBCL, and solid tumors expected to enter clinical trials soon [1] Market Potential - The global MM market is substantial, with 188,000 new cases and 121,000 deaths annually, making it the largest single subtype in the hematologic oncology market [1] - SIM0500 has shown superior tumor suppression in preclinical models compared to competing BCMA x CD3 bispecific antibodies and GPRC5D x CD3 bispecific antibodies [1] - The low-affinity targeting of CD3 and subcutaneous injection formulation may reduce CRS risk and improve administration convenience [1]

Investment Rating - The report does not provide a specific investment rating for Simcere Pharmaceutical (2096 HK) [1] Core Views - Simcere Pharmaceutical's new drug Xianbixin sublingual tablets have been approved for market, which is expected to synergize with the injectable form to improve stroke treatment accessibility [2] - Two other drugs, Celsera and Enlituo, have been included in the National Reimbursement Drug List (NRDL), significantly enhancing their market accessibility [3] - The company's innovative drug revenue accounted for over 70% of total revenue in H1 2024, with a noticeable increase in gross margin [4] Financial Performance - In H1 2024, Simcere Pharmaceutical's revenue from innovative drugs reached 2 2 billion yuan, accounting for 70 7% of total revenue [4] - The company's gross margin in H1 2024 was 79 1%, an increase of 3 4 percentage points compared to the same period in 2023 [4] - Revenue is projected to grow from 6 64 billion yuan in 2024 to 9 36 billion yuan in 2026, with net profit expected to increase from 714 76 million yuan to 1 78 billion yuan over the same period [6][10] Product Pipeline - Xianbixin sublingual tablets showed a 64 4% functional recovery rate in clinical trials, significantly higher than the placebo group's 54 7% [2] - Celsera, a drug that protects bone marrow during chemotherapy, was successfully included in the NRDL and achieved localization in Hainan Province, potentially improving product gross margin [3] - Enlituo, a domestically developed EGFR monoclonal antibody, was approved in China in June 2024 and also included in the NRDL [3] Market Expectations - Xianbixin sublingual tablets are expected to achieve penetration rates of 0 9% and 3 9% in 2025 and 2026, respectively, with corresponding revenues of 250 million yuan and 650 million yuan [9] - Celsera is projected to reach penetration rates of 4%, 12%, and 16% in 2024, 2025, and 2026, respectively, with revenues of 220 million yuan, 420 million yuan, and 560 million yuan [9] - The company's overall revenue is expected to grow at a compound annual growth rate (CAGR) of 18 8% from 2024 to 2026 [10]

Financial Performance - Revenue for the six months ended June 30, 2024, was approximately RMB 3.114 billion, a decrease of about 7.9% compared to RMB 3.382 billion in the same period of 2023[7]. - Profit attributable to equity shareholders was approximately RMB 457 million, a decrease of about 79.9% from RMB 2.274 billion in the same period of 2023[7]. - Adjusted profit attributable to equity shareholders was approximately RMB 538 million, an increase of about 36.5% from RMB 394 million in the same period of 2023[7]. - Operating profit decreased significantly to RMB 492,160 thousand from RMB 2,311,046 thousand, indicating a decline of 78.7% year-over-year[117]. - Net profit for the period was RMB 456,600 thousand, a decrease of 80.0% compared to RMB 2,272,873 thousand in the previous year[118]. - Basic earnings per share for the six months ended June 30, 2024, was RMB 0.18, down from RMB 0.87 in the same period of 2023[117]. Revenue Breakdown - Innovative pharmaceutical business revenue was approximately RMB 2.203 billion, accounting for about 70.7% of total revenue, down approximately 8.7% from RMB 2.413 billion in the same period of 2023[7]. - Revenue from the oncology segment was approximately RMB 619 million, accounting for 19.9% of total revenue, down about 20.9% from RMB 783 million in the same period last year[58]. - Pharmaceutical sales accounted for RMB 2,955,614,000, down from RMB 3,062,491,000, representing a decline of 3.5%[141]. - Revenue from promotional services decreased significantly to RMB 130,398,000 from RMB 319,204,000, a drop of 59.2%[141]. Research and Development - The group has established R&D innovation centers in Shanghai, Nanjing, Beijing, Boston, and Hong Kong, focusing on oncology, neurology, and autoimmune diseases[8]. - The R&D team consists of approximately 880 personnel, including about 160 PhDs and 460 master's degree holders[8]. - The company has over 60 innovative drug candidates in its research pipeline, with 16 currently undergoing clinical trials[14]. - Research and development expenses totaled approximately RMB 566 million, a decrease of about 27.0% from RMB 776 million in the same period last year, representing 18.2% of revenue[60]. - The company achieved eight new drug clinical trial applications (IND) approvals during the reporting period, including for Xianbixin® and SIM0501[11]. Product Development and Approvals - As of June 30, 2024, the company has expanded its innovative drug portfolio to seven commercialized products, including Enzhuo® and Xianbixin®[11]. - The company received NMPA approval for Enlituo® for the treatment of metastatic colorectal cancer, marking a significant milestone in its product offerings[12]. - The company’s innovative drug Xianbixin® became the first oral antiviral COVID-19 drug in China to receive regular approval[12]. - The product Endu® is the first anti-angiogenesis targeted drug in China and the only approved endothelial inhibitor globally, recommended for first-line treatment of advanced non-small cell lung cancer (NSCLC) in multiple clinical practice guidelines[18]. - The product Envita® is the world's first subcutaneously administered PD-(L)1 antibody, offering advantages such as shorter administration time and good safety profile[21]. Market Presence and Collaborations - The company is actively expanding its market presence through collaborations, including a recent agreement with Shenzhen Tajiri Biopharmaceutical Co., Ltd. for a non-small cell lung cancer drug[12]. - The company aims to leverage its rich pipeline of innovative drugs to address unmet clinical needs and improve patient outcomes[14]. - The company is focused on enhancing R&D efficiency and quality, driven by supportive government policies and technological innovations in the pharmaceutical sector[10]. - The company is committed to conducting overseas clinical trials and advancing pipeline licensing abroad to enhance its global presence[76]. Financial Position and Cash Flow - As of June 30, 2024, the group had cash and cash equivalents of approximately RMB 2.755 billion as of June 30, 2024, compared to RMB 2.007 billion as of December 31, 2023[66]. - The current ratio was approximately 209.9% as of June 30, 2024, unchanged from December 31, 2023, while the debt-to-asset ratio increased to 41.0% from 33.5%[67]. - The group had bank loans totaling approximately RMB 1.003 billion as of June 30, 2024, down from RMB 1.221 billion as of December 31, 2023[66]. - The net cash generated from operating activities was approximately RMB 863 million, a significant increase from a net cash outflow of RMB 82 million in the same period last year[66]. - The company reported a net cash outflow from investing activities of RMB 401,964 thousand, compared to a net cash inflow of RMB 1,352,104 thousand in the same period last year[134]. Shareholder Information and Governance - As of June 30, 2024, the company has a total of 2,543,785,618 shares issued, with major shareholders holding significant stakes, including Mr. Ren Junsheng with 1,802,238,668 shares, representing 70.85%[78]. - The company maintains strict corporate governance principles to ensure transparency and accountability to shareholders[103]. - The company has not declared any interim dividend for the six months ending June 30, 2024[109]. - The audit committee, consisting of three independent non-executive directors, has reviewed the financial reporting process and confirmed compliance with applicable accounting standards[106]. Strategic Initiatives - The company aims to enhance market positioning and deepen collaboration with healthcare institutions to increase market share and accessibility of existing products[76]. - The company is actively exploring diversified sales channels to support sustainable development and provide more quality treatment options for patients[76]. - The company has allocated approximately HKD 2,107.85 million (60% of the net proceeds) for strategic therapeutic areas, with HKD 1,635.40 million utilized as of June 30, 2024[111].

Investment Rating - The report maintains a "Buy" rating for Simcere Pharmaceutical Group (02096) [4] Core Views - Simcere Pharmaceutical's adjusted net profit grew rapidly in H1 2024, driven by the commercialization of innovative drugs [1] - The company's innovative drug revenue accounted for over 70% of total revenue, with a strong trend of increasing proportion [1] - Multiple blockbuster innovative drugs have made progress, with one new drug approved and two new drug NDAs accepted [1] - The report is optimistic about the company's performance growth from 2024 to 2026, driven by both existing and new innovative drug products [1][2] Financial Performance - H1 2024 revenue was approximately RMB 3.114 billion (YoY -7.9%), mainly due to declines in promotion service revenue and Simceres sales [1] - Innovative drug revenue was approximately RMB 2.203 billion (YoY -8.7%), accounting for 70.7% of total revenue [1] - Net profit attributable to shareholders was RMB 457 million (YoY -79.9%), while adjusted net profit was RMB 538 million (YoY +36.5%) [1] Innovation Progress - One new innovative drug, Enlituo, was approved for marketing [1] - Two new innovative drugs, Enzeshu and Keweike, had their NDAs accepted [1] - Leduquimab (IL-4Rα) completed FPI for two indications: atopic dermatitis and asthma [1] Financial Forecasts - 2024-2026 EPS is projected to be RMB 0.38, 0.48, and 0.59 per share respectively [2] - 2024E revenue is forecasted at RMB 7.459 billion (+13% YoY), with net profit of RMB 960 million (+34% YoY) [3][7] - 2025E revenue is projected at RMB 8.666 billion (+16% YoY), with net profit of RMB 1.225 billion (+28% YoY) [3][7] - 2026E revenue is expected to reach RMB 9.802 billion (+13% YoY), with net profit of RMB 1.489 billion (+22% YoY) [3][7] Valuation - As of September 4, 2024, the stock's closing price corresponds to a 2024 PE of 15x [2] - The report maintains a positive outlook on the company's growth potential driven by its innovative drug portfolio [2] Key Financial Ratios - Gross margin is expected to increase from 75.43% in 2023 to 81.25% in 2026 [9] - Net profit margin is projected to grow from 10.82% in 2023 to 15.19% in 2026 [9] - ROE is forecasted to improve from 9.90% in 2023 to 15.84% in 2026 [9] - Debt-to-asset ratio is expected to decrease from 33.45% in 2023 to 29.69% in 2026 [9]