HWHG(SH:600079) Haitong Securities·2024-07-29 08:31Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2] Core Views - The report highlights that Yichang Renfu's sales scale and operational efficiency are steadily improving, with a revenue of 12.861 billion yuan in the first half of 2024, representing a year-on-year growth of 3.86%. However, the net profit attributable to the parent company decreased by 16.07% to 1.111 billion yuan [6][7] - The report also notes that the company plans to distribute a cash dividend of 1.50 yuan per 10 shares, amounting to approximately 244.84 million yuan, which is 22.04% of the net profit attributable to shareholders for the first half of 2024 [7] - The earnings forecast for the company indicates an expected EPS of 1.32, 1.38, and 1.53 yuan for 2024, 2025, and 2026 respectively, with net profit growth rates of 0.6%, 4.9%, and 10.8% [7][11] Financial Performance Summary - In the first half of 2024, the revenue from Yichang Renfu was 4.502 billion yuan, up 11.78% year-on-year, while the net profit increased by 17.59% to 1.425 billion yuan. Other subsidiaries showed varied performance, with Epic Pharma achieving a revenue growth of 35.14% [6] - The company's total revenue is projected to grow from 24.525 billion yuan in 2023 to 31.264 billion yuan by 2026, with a consistent growth rate of around 9.5% [8][11] - The gross profit margin is expected to remain stable, with slight improvements projected from 45.8% in 2023 to 45.3% in 2026 [11] Valuation and Comparison - The report suggests a valuation range of 18.42 to 23.68 yuan based on a PE ratio of 14-18 times for 2024, reflecting the company's stable position in the anesthetic drug industry [7][10] - Comparatively, the report includes a valuation table for peer companies, indicating that the average PE for comparable companies is significantly higher, suggesting a potential undervaluation of Yichang Renfu [10]