JINGXIN(SZ:002020) Xin Lang Cai Jing·2025-09-03 08:39Core Viewpoint - The company faces short-term pressure on performance but is improving profitability through effective cost control and growth in specific product lines [1][2]. Group 1: Financial Performance - In the first half of 2025, the company achieved revenue of 2.017 billion yuan, a year-on-year decrease of 6.2%, and a net profit attributable to shareholders of 388 million yuan, down 3.5% year-on-year [1]. - The decline in performance is primarily due to the impact of centralized procurement on finished drugs, which saw a year-on-year decrease of 9.7%, but growth in the sales of Didasun and export of formulations (up 30.1% year-on-year) helped mitigate this impact [1]. - The company has improved its net profit margin, which increased by 0.6 percentage points year-on-year, and expects further enhancement in profitability as the impact of centralized procurement diminishes [1]. Group 2: Product Development and Pipeline - The company is advancing its pipeline in three key areas: 1. In the psychiatric field, the NDA for the schizophrenia drug, Calirazine Hydrochloride Capsules, has been submitted, and the Phase II clinical trial for the innovative drug JX11502 has been completed [2]. 2. In the cardiovascular field, the NDA for the high cholesterol drug, Calriven Hydrochloride Tablets, has been submitted, while the new drug JX2201 is undergoing Phase I clinical trials [2]. 3. In digestive diseases, the Phase II clinical trial for the modified traditional Chinese medicine, Recovery New Enteric Capsules, has been completed and is set to advance to Phase III [2]. - The company has established a robust pipeline that is expected to contribute to future revenue growth [2]. Group 3: Earnings Forecast and Investment Recommendation - Based on the mid-2025 report, the company has adjusted its revenue and expense assumptions for finished and raw materials, while increasing the revenue assumption for medical devices [3]. - The adjusted EPS for 2025-2027 is projected to be 0.95, 1.10, and 1.25 yuan, respectively, up from previous estimates [3]. - The target price is set at 25.30 yuan based on a 23x PE ratio for comparable companies in 2026, maintaining a "buy" rating [3].