NHWA(SZ:002262) Xin Lang Cai Jing·2025-11-21 06:34Core Viewpoint - The company reported Q3 2025 revenue of 1.461 billion yuan (+5.70%) and net profit attributable to shareholders of 406 million yuan (+3.67%), indicating short-term performance pressure due to the impact of the etomidate alliance procurement and restrictions on the prescription of midazolam [1][2]. Financial Performance - Q3 2025 revenue reached 1.461 billion yuan, reflecting a 5.70% increase year-on-year - Net profit attributable to shareholders was 406 million yuan, up 3.67% - Non-recurring net profit stood at 409 million yuan, increasing by 3.20% - Gross margin was reported at 77.63% [1]. Business Challenges - The performance of core products etomidate and midazolam has been poor, significantly affecting short-term results - Etomidate sales are under pressure due to the impact of procurement alliances in Hebei, Sichuan-Chongqing, and delayed implementation in Guangdong - Midazolam will be subject to red prescription status starting July 2024, which will limit sales due to stricter prescription authority requirements [2]. Innovation Pipeline - The CNS innovation pipeline of the company is worthy of re-evaluation, as it has a comprehensive layout for CNS new drugs targeting schizophrenia, depression, Alzheimer's, and Parkinson's disease - Key products in development include NHL35700 (schizophrenia, soon to enter Phase III), NH300231 (Phase I), NH140068 (Phase I), NH102 (depression, Phase II), NH104 (Phase I), and NH130 (Parkinson's, currently in clinical trials) [2]. Investment Outlook - Due to the impact of etomidate alliance procurement and stock incentive amortization on apparent performance, the profit forecast has been revised downwards - Expected net profits for 2025-2027 are projected at 1.229 billion, 1.414 billion, and 1.735 billion yuan, representing year-on-year growth of 7.5%, 15.0%, and 22.7% respectively - The current stock price corresponds to P/E ratios of 20, 17, and 14 times for the respective years - The company is considered to have a clear margin of safety, with strong long-term growth potential in both the anesthesia line and CNS innovative drugs - A target price of 32.0 yuan is set, with a recommendation to "buy" [3].