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 market penetration of new products and BD collaboration revenue, leading to a 26% increase in overall revenue from innovative drugs [1] Financial Performance - The company's overall performance in the first half met expectations, with revenue and adjusted net profit increasing by 15% and 21% year-on-year, respectively, aligning with the firm's forecasts [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 in the next three years, with at least five innovative drugs/new indications likely to be approved for market launch [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 be around 2 billion [1] Investment Recommendation - The target price for the company has been raised from HKD 14.3 to HKD 16.4, maintaining a buy rating and highlighting it as a key recommendation [1]
交银国际：升先声药业目标价至16.4港元 维持“买入”评级