Core Viewpoint - The report from CMB International indicates that Sihuan Pharmaceutical (02096) achieved strong performance growth in the first half of the year, driven by rapid volume growth of new products and BD collaboration income, leading to a 26% increase in overall revenue from innovative drugs [1] Financial Performance - The company's revenue and adjusted net profit increased by 15% and 21% year-on-year, respectively, aligning with expectations [1] - Gross margin improved by 1.6 percentage points to 80.7%, reflecting a higher contribution from high-margin innovative drug revenues [1] - SG&A expense ratio slightly increased due to the need for more commercialization resources for multiple new product launches [1] Future Outlook - The company is expected to enter a critical turning point for R&D achievements over the next three years, with at least five innovative drugs/new indications likely to be approved for market [1] - Management updated the performance guidance for 2025 to 2027, projecting a revenue and adjusted net profit growth of over 15% year-on-year for 2025 [1] - By 2027, revenue is anticipated to reach 11 billion, corresponding to a 20% compound annual growth rate from 2025 to 2027, with adjusted net profit expected to reach around 2 billion [1] Investment Recommendation - CMB International raised the target price from 14.3 HKD to 16.4 HKD, maintaining a buy rating and highlighting the company as a key recommendation [1]
交银国际：升先声药业(02096)目标价至16.4港元 维持“买入”评级