NHWA(SZ:002262) CSC SECURITIES (HK) LTD·2024-07-31 05:31Investment Rating - The investment rating for the company is "Buy" [4][5]. Core Insights - The company achieved a revenue of 2.76 billion RMB in the first half of 2024, representing a year-over-year increase of 15.1%, with a net profit of 630 million RMB, also up by 15.5% year-over-year [4]. - The anesthetics segment showed significant growth, with revenue reaching 1.52 billion RMB, a year-over-year increase of 20.0%, driven by the increasing sales of sufentanil and alfentanil [4]. - The company has a robust pipeline with over 70 projects in development, including more than 20 innovative drugs, which is expected to support long-term growth [4]. Summary by Sections Company Overview - The company operates in the pharmaceutical and biotechnology industry, with a current A-share price of 24.02 RMB as of July 30, 2024, and a target price of 28 RMB [2][4]. - The company has a market capitalization of 21.18 billion RMB and a total share count of approximately 1,007.59 million shares [2]. Financial Performance - In Q2 2024, the company reported a revenue of 1.41 billion RMB, with a net profit of 360 million RMB, reflecting a year-over-year increase of 14.6% [4]. - The overall gross margin for Q2 was 74.2%, with a slight increase of 0.1 percentage points year-over-year [4]. Future Projections - The company is expected to achieve net profits of 1.26 billion RMB, 1.51 billion RMB, and 1.80 billion RMB for the years 2024, 2025, and 2026, respectively, with year-over-year growth rates of 21.0%, 20.0%, and 19.5% [5][6]. - The estimated earnings per share (EPS) for the same years are projected to be 1.25 RMB, 1.49 RMB, and 1.79 RMB, with corresponding price-to-earnings (P/E) ratios of 19, 16, and 13 [5][6].