GLORIA PHARMA.(SZ:002437) Xin Lang Zheng Quan·2025-11-21 09:17Core Viewpoint - The financial report of Yuheng Pharmaceutical reveals a significant increase in net profit, primarily driven by non-operating income, raising concerns about the sustainability of its core business profitability [1][4]. Group 1: Financial Performance - Yuheng Pharmaceutical's net profit surged by 86.86% year-on-year, reaching 244 million yuan in the first three quarters of 2025 [1]. - The company reported 377 million yuan in entrusted financial management income, which accounted for 154.5% of its net profit, indicating that the core business is actually operating at a loss when excluding this income [1]. - Revenue has declined for three consecutive years, dropping from 2.626 billion yuan in 2023 to 1.665 billion yuan in the first three quarters of 2025, with a year-on-year decline of 10.36% [2]. Group 2: Product and Market Challenges - The core product, injectable multivitamins, holds an 80% market share but has seen growth slow to 10% due to price reductions from centralized procurement [2]. - Another key product, pravastatin sodium tablets, did not qualify for the 11th batch of centralized procurement, leading to expectations of a significant sales decline in 2026 [2]. - New product introductions have underperformed, with the recently launched sitagliptin and metformin sustained-release tablets generating only 25 million yuan in revenue, falling short of expectations [2]. Group 3: R&D and Strategic Concerns - Yuheng Pharmaceutical's R&D investment has consistently been below 3%, significantly lower than the industry average of 8%, raising concerns about its long-term competitiveness [3]. - The company has over 20 projects in development, none of which are original innovative drugs, indicating a lack of innovation in its pipeline [3]. - Cost control measures have reached their limits, with the sales expense ratio dropping below 25%, primarily due to passive reductions from centralized procurement policies, leaving little room for further cuts [3]. Group 4: Conclusion - The financial report highlights a strategic confusion within Yuheng Pharmaceutical amid industry changes, with short-term financial gains masking deeper issues such as revenue decline, product gaps, and lack of innovation [4]. - To build a sustainable growth model, the company needs to reduce reliance on non-operating income and focus on product structure optimization, increased R&D investment, and strategic acquisitions [4].