Investment Rating - The investment rating for the company is "Buy" and the rating has been maintained [1][3][8] Core Views - The company achieved record high performance in 2024, with operating revenue of 41.906 billion yuan, a year-on-year increase of 3.16%, and a net profit attributable to shareholders of 3.512 billion yuan, up 23.72% year-on-year [3][8] - The pharmaceutical industry is identified as the core growth engine, with the pharmaceutical manufacturing segment achieving a net profit of 2.876 billion yuan, a year-on-year increase of 29.04% [3][4] - The company has accelerated the launch of innovative products, with significant R&D investment in the pharmaceutical sector reaching 2.678 billion yuan, a 16.77% increase year-on-year [3][4] Summary by Sections Financial Performance - In 2024, the company reported operating revenue of 41.906 billion yuan, with a gross margin of 33.21% and a net margin of 8.34% [3][10] - The pharmaceutical commercial, industrial, aesthetic medicine, and industrial microbiology segments generated revenues of 27.092 billion, 13.811 billion, 2.326 billion, and 711 million yuan respectively, with growth rates of 0.41%, 13.05%, -4.94%, and 43.12% [3][4] R&D and Innovation - The company has 133 ongoing pharmaceutical projects, with 94 being innovative products and biosimilars [3][4] - Several innovative products were approved for market launch in 2024, including CAR-T product and biosimilar injections [4][5] Market Outlook - The company expects net profits for 2025-2027 to be 4.028 billion, 4.559 billion, and 5.120 billion yuan respectively, with corresponding EPS of 2.30, 2.60, and 2.92 yuan [8][10] - The company is focusing on expanding its international market presence and enhancing its product development capabilities [5][6]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's profit performance slightly exceeded expectations, with notable growth in the industrial and industrial microbiology segments [7] - In 2024, the company achieved total revenue of 41.906 billion yuan, representing a year-on-year growth of 3.16%, and a net profit attributable to shareholders of 3.512 billion yuan, up 23.72% year-on-year [7] - The industrial segment saw rapid growth, with core subsidiary China Medical East achieving sales revenue of 13.811 billion yuan, a 13.05% increase, and a net profit of 2.876 billion yuan, up 29.04% [7] - The industrial microbiology segment reported a significant revenue increase of 43.12%, with various sub-segments showing strong growth [7] - The aesthetic medicine segment experienced a decline in overseas revenue but maintained growth in domestic revenue, with total revenue of 2.326 billion yuan, down 4.94% year-on-year [7] - The company has a rich pipeline of products under development, focusing on oncology, endocrinology, and autoimmune diseases, with over 80 innovative drug candidates [7] - The profit forecast for 2025-2026 has been adjusted, with expected net profits of 4.014 billion yuan and 4.539 billion yuan, respectively, corresponding to a P/E ratio of 17 and 15 [7] Financial Summary - Total revenue for 2023 is projected at 40.624 billion yuan, with a year-on-year growth of 7.71% [1] - The net profit attributable to shareholders for 2023 is estimated at 2.839 billion yuan, reflecting a year-on-year increase of 13.59% [1] - The latest diluted EPS for 2023 is expected to be 1.62 yuan per share, with a P/E ratio of 24.30 [1] - The company’s total assets are projected to reach 37.879 billion yuan by 2024, with total liabilities of 14.315 billion yuan [8] - The cash flow from operating activities for 2024 is expected to be 3.749 billion yuan [8]

调研纪要：华东医药在多个领域积极推进产品研发和市场布局。GLP-1系列产品进展顺利，部分进入III 期临床研究，预计2025年取得重要成果。ADC和PROTAC领域有多项创新产品，部分已进入临床阶段。 公司积极准备产品上市，争取早日进入医保，百令胶囊成功中选全国中成药联盟集采续约，市场覆盖和 基层渗透有基础。公司对海外医美市场抱有信心，正在积极推进医美产品海外注册工作。工业微生物板 块各业务单元保持较快增长，整体销售趋势向好，未来将加快开拓国际市场。 机构简介： PinPoint是一家为高端客户提供一系列选择性（包括Equity和Commodity）投资产品的优秀资产管理机 构,持有香港9号牌牌照。公司的投资理念是：我们认为金融市场，特别是亚洲市场不是完全有效的。因 此我们可以通过深入的研究和合理的分析取得超值回报。我们崇尚价值投资，注重对被投资公司或商品 的基本面分析。公司致力于与广大国际投资者一起分享价值投资的成功喜悦。我们拥有二十六位专业人 员来负责投资组合管理、研究、交易、风险管理及运营。我们的专业人员都在中国或海外（如美国、英 国、加拿大等）高等学府受过良好的教育，并且在金融领域拥有丰富的国内和国际 ...

Financial Performance - In 2024, the company achieved a revenue of CNY 41.906 billion, a year-on-year increase of 3.16% [4] - The net profit attributable to shareholders was CNY 3.512 billion, up 23.72% year-on-year [4] - The net profit after deducting non-recurring gains and losses was CNY 3.352 billion, reflecting a growth of 22.48% [4] - Compared to 2021, revenue and net profit grew by 21.24% and 52.59%, respectively [4] Business Segments Performance Pharmaceutical Industry - The pharmaceutical segment generated a revenue of CNY 13.811 billion, with a year-on-year growth of 13.05% [5] - The net profit for this segment was CNY 2.876 billion, increasing by 29.04% [5] - R&D investment in the pharmaceutical industry reached CNY 2.678 billion, a 16.77% increase [5] Aesthetic Medicine - The domestic aesthetic medicine subsidiary reported a revenue of CNY 1.139 billion, growing by 8.32% [6] - The UK subsidiary, Sinclair, generated approximately CNY 0.967 billion, a decline of 25.81% due to global economic challenges [6] Industrial Microbiology - The industrial microbiology segment achieved a revenue of CNY 0.711 billion, a significant increase of 43.12% [25] - Growth rates for specific areas included 38% for specialty raw materials and intermediates, 20% for xRNA, and 142% for health and biological materials [25] R&D and Product Development - The company has over 80 innovative drug candidates in its pipeline [5] - The oral small molecule GLP-1 receptor agonist HDM1002 has shown promising results in clinical trials, with over 800 participants [17] - The ADC pipeline includes more than 12 projects, with ongoing clinical trials for several candidates [14] Market Strategy and Future Outlook - The company plans to actively participate in medical insurance negotiations for new products [6] - There is a focus on expanding market presence in both domestic and international markets, particularly in the aesthetic medicine sector [26] - The company anticipates a gradual recovery in overseas aesthetic medicine markets [26] Investor Relations and Communication - The annual performance meeting was attended by 381 institutional and individual investors [2] - The chairman emphasized the commitment to high-quality development and strategic goals for the upcoming three-year plan [27]

Group 1 - The core viewpoint of the article is that the audit committee of East China Pharmaceutical Co., Ltd. has conducted a thorough evaluation of the performance of the accounting firm Tianjian for the 2024 fiscal year, confirming its compliance with professional standards and independence [7][12][24]. - The audit committee reported that Tianjian effectively executed its quality management measures during the annual audit process, with no significant issues identified [2][11]. - The audit work plan for 2024 was comprehensive and tailored to the company's specific needs, focusing on key areas such as revenue recognition and asset impairment [3][4]. Group 2 - Tianjian has established a dedicated audit team with members possessing extensive experience in auditing listed companies, supported by experts in various fields [4]. - The company has implemented a systematic information security management framework, ensuring the confidentiality and proper handling of sensitive information during the audit process [5]. - Tianjian has accumulated over 100 million yuan in professional risk funds and liability insurance, demonstrating its capacity to manage professional risks [6]. Group 3 - The audit committee's evaluation confirmed that Tianjian adhered to independent auditing principles and provided objective and fair reflections of the company's financial status [10][12]. - The company has made changes to its accounting policies in accordance with new regulations issued by the Ministry of Finance, effective from January 1, 2024, which will not impact previously disclosed financial statements [14][22]. - The board of directors and the supervisory board have approved the changes to the accounting policies, affirming that these changes are reasonable and will not adversely affect the company's financial results [25][26].

Core Viewpoint - The company has achieved significant growth in revenue and net profit, demonstrating resilience and adaptability in a competitive pharmaceutical market, while focusing on innovation and high-quality development across its four main business segments [21][24][28]. Company Overview - Founded in 1993 and headquartered in Hangzhou, Zhejiang, the company has developed into a large-scale comprehensive pharmaceutical listed company covering the entire pharmaceutical industry chain, including pharmaceutical manufacturing, commercial distribution, medical aesthetics, and industrial microbiology [5][6]. Business Segments Pharmaceutical Manufacturing - The pharmaceutical manufacturing segment achieved a sales revenue of 138.11 billion yuan, a year-on-year increase of 13.05%, and a net profit of 28.76 billion yuan, up 29.04% [24][25]. - The company focuses on high-quality, efficient development, optimizing organizational structure, and enhancing capability construction [24]. Pharmaceutical Commercial - The pharmaceutical commercial segment reported a revenue of 270.92 billion yuan, a slight increase of 0.41%, and a net profit of 4.56 billion yuan, up 5.58% [28]. - The company emphasizes maintaining existing market share while expanding into new markets, enhancing service quality, and leveraging digital transformation [29][30]. Medical Aesthetics - The medical aesthetics segment generated revenue of 23.26 billion yuan, a decrease of 4.94%, but is expected to recover with new product launches [31][32]. - The company has a global operational platform through its subsidiary Sinclair, focusing on expanding its product offerings and market presence [31][32]. Industrial Microbiology - The industrial microbiology segment achieved a sales revenue of 7.11 billion yuan, a significant increase of 43.12% [39]. - The company is actively expanding its international market presence and enhancing its product development capabilities in this segment [40][41]. Financial Performance - In 2024, the company reported total revenue of 419.06 billion yuan, a year-on-year growth of 3.16%, and a net profit of 35.12 billion yuan, up 23.72% [21][22]. - The company maintains a comprehensive gross profit margin of 33.21%, reflecting improved operational quality [21]. Innovation and R&D - The company has established a global new drug R&D center, focusing on innovative drug development in oncology, endocrinology, and autoimmune diseases, with over 80 innovative drug pipelines [9][10]. - Continuous investment in R&D has led to the development of a diverse product pipeline, ensuring a steady flow of innovative products to the market [9][10]. Market Strategy - The company is adapting to the evolving pharmaceutical market landscape by enhancing its marketing strategies, focusing on digital transformation, and improving service delivery across its business segments [28][30]. - The company aims to strengthen its competitive position by leveraging its established relationships with healthcare providers and expanding its product offerings [30].

Investment Rating - The report assigns a "Buy" rating to the company, indicating a potential upside of 15% to 35% [9] Core Insights - The company achieved a revenue of RMB 419.1 billion in 2024, representing a year-over-year growth of 3.2%, with a net profit of RMB 35.1 billion, up 23.7% year-over-year [5] - The pharmaceutical industrial segment showed steady growth, with a core subsidiary generating revenue of RMB 138.1 billion, a year-over-year increase of 13.1% [7] - The company is actively advancing new innovative drugs and medical aesthetics products, with a research and development investment of RMB 2.7 billion in 2024, reflecting a year-over-year increase of 16.8% [7] Financial Performance - The company reported a gross margin of 33.2% in 2024, an increase of 0.8 percentage points year-over-year, while the expense ratio decreased to 22.1%, down 1 percentage point [7] - The projected net profits for 2025, 2026, and 2027 are RMB 40.7 billion, RMB 47.8 billion, and RMB 55.7 billion, respectively, with year-over-year growth rates of 15.9%, 17.6%, and 16.5% [8] - The earnings per share (EPS) for the same years are expected to be RMB 2.32, RMB 2.73, and RMB 3.18, with corresponding price-to-earnings (P/E) ratios of 16X, 13X, and 12X [8] Shareholder Information - The major shareholder is China Yuanda Group Co., Ltd., holding 41.67% of the shares [5] - The company has a total market capitalization of RMB 645.24 billion [5] Market Position - The company operates in the pharmaceutical and medical aesthetics sectors, with a product mix that includes 52.1% from commercial operations and 15.3% from manufacturing [2]

Investment Rating - The report assigns a "Buy" rating to the company, indicating a potential upside of 15% to 35% [9]. Core Insights - The company achieved a revenue of RMB 419.1 billion in 2024, representing a year-over-year growth of 3.2%, with a net profit of RMB 35.1 billion, up 23.7% year-over-year [5]. - The pharmaceutical industrial segment showed steady growth, with the core subsidiary achieving a revenue of RMB 138.1 billion, a year-over-year increase of 13.1% [7]. - The company is actively advancing new innovative drugs and medical aesthetic products, with a total of 94 projects in research and development [7]. Summary by Sections Company Performance - The company reported a net profit of RMB 35.1 billion for 2024, with a quarterly revenue of RMB 104.3 billion in Q4, marking a year-over-year increase of 1.9% [5]. - The company plans to distribute a cash dividend of RMB 5.80 per 10 shares [5]. Revenue Breakdown - The pharmaceutical commercial segment generated revenue of RMB 270.9 billion, with a net profit of RMB 4.6 billion, reflecting a year-over-year growth of 0.4% [7]. - The overseas medical aesthetic business faced challenges, with revenue declining by 25.8%, while domestic medical aesthetics grew by 8.3% [7]. Profitability Metrics - The overall gross margin for 2024 was 33.2%, an increase of 0.8 percentage points year-over-year, driven by improved margins in the pharmaceutical commercial segment [7]. - The company’s expense ratio decreased to 22.1%, down 1 percentage point from the previous year [7]. Future Outlook - The company forecasts net profits of RMB 40.7 billion, RMB 47.8 billion, and RMB 55.7 billion for 2025, 2026, and 2027, respectively, with year-over-year growth rates of 15.9%, 17.6%, and 16.5% [8]. - The expected earnings per share (EPS) for the same years are projected to be RMB 2.32, RMB 2.73, and RMB 3.18, with corresponding price-to-earnings (P/E) ratios of 16X, 13X, and 12X [8].

Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of RMB 52.27 [7][8]. Core Views - The company's 2024 net profit attributable to shareholders exceeded expectations, driven by a strong recovery in the high-margin industrial sector, with a year-on-year increase of 23.7% to RMB 3.51 billion [1][5]. - The report highlights that the risks associated with industrial procurement are manageable, and the domestic innovative drug sector is entering a period of significant approvals [2][3]. - The company is poised for growth with its self-developed GLP-1 series innovative drugs expected to enter international markets soon [3]. Summary by Sections Financial Performance - In 2024, the company achieved revenue of RMB 41.91 billion, a year-on-year increase of 3.2%, and a net profit of RMB 3.51 billion, up 23.7% year-on-year [1][6]. - The fourth quarter of 2024 saw revenue of RMB 10.43 billion, with a net profit of RMB 0.95 billion, reflecting a significant year-on-year increase of 46.2% [1]. Industrial Sector Insights - The industrial sector's revenue reached RMB 13.81 billion in 2024, growing by 13.1% year-on-year, with a non-deductible net profit increase of 29.0% year-on-year [2]. - The impact of generic drug procurement is expected to be limited, with a minor price reduction of 0.15% for the company's products [2]. Innovative Drug Development - The company has a comprehensive GLP-1 innovative drug portfolio, including HDM1002, which is in phase 3 clinical trials in China and is expected to enter international markets [3]. - Several innovative drugs are anticipated to be approved in 2025, including a PARP inhibitor and an EGFR-TKI for lung cancer [2]. Business Segments - The commercial segment generated revenue of RMB 27.09 billion in 2024, showing a slight year-on-year increase of 0.4% [4]. - The medical aesthetics segment reported revenue of RMB 2.33 billion, down 5.0% year-on-year, with expectations for stabilization in overseas revenue [4]. Profit Forecast and Valuation - The net profit forecasts for 2025-2027 have been adjusted to RMB 4.05 billion, RMB 4.64 billion, and RMB 5.23 billion, respectively, reflecting an upward revision [5][12]. - The company's overall valuation is estimated at RMB 91.69 billion using the SOTP valuation method, with a target price of RMB 52.27 [5][12].

近日，华东医药发布2024年财报。披露公司去年营收增长3.16%至419.06亿元，归属净利提高23.72%至35.12亿元。 谈及丰富的专科慢病产品管线及特色的三大治疗领域布局，公告介绍，公司多年来深耕专科、慢病及特殊用药领域， 在慢性肾病、免疫、内分泌、肿瘤、消化系统、心血管等治疗领域构筑了良好的品牌效应和雄厚的市场基础，市场占 有率持续保持国内同类产品前列。 同时公司在肿瘤、内分泌和自身免疫三大核心治疗领域均已有全球首创新药（first-in-class）上市，并形成了 ADC、 GLP-1、外用制剂三大特色产品矩阵，构筑差异化优势。 公司深耕糖尿病用药领域二十余年，在糖尿病临床主流治疗靶点形成了创新药和差异化仿制药产品管线全面布局，目 前商业化及在研产品达到二十余款。公司现有及后续升级产品涵盖 α-糖苷酶抑制剂、DPP-4 抑制剂、SGLT-2抑制剂、 GLP-1 受体单靶点及长效多靶点激动剂、胰岛素及其类似物等多项临床主流靶点。围绕 GLP-1 靶点，公司已构筑了包 括口服片剂、注射剂在内的长效及多靶点全球创新药和生物类似药相结合的全方位和差异化的产品管线。 在自免领域，公司现有产品及在研产品适应症 ...