SNSW(688117) 信达证券·2024-07-31 08:03Investment Rating - The report assigns a "Buy" rating for Shengnuo Biotech (688117) based on its strong growth potential and competitive advantages in the pharmaceutical industry [1]. Core Views - Shengnuo Biotech reported a revenue of 1.99 billion yuan for H1 2024, reflecting a year-on-year increase of 8.14%, while the net profit attributable to the parent company reached 0.22 billion yuan, up 106.55% year-on-year [1]. - The company is experiencing a reduction in gross margin and sales expense ratio due to centralized procurement impacts, while R&D expenses have increased significantly [1]. - The report highlights that self-developed products are showing high growth, particularly in the CDMO segment, which has seen a decline [1]. Financial Performance Summary - For H1 2024, the company achieved a comprehensive gross margin of 10.95%, a decrease of 0.64 percentage points, while the net profit margin attributable to the parent company increased to 9.61%, up 4.29 percentage points [1]. - The report indicates that the sales, management, R&D, and financial expense ratios for H1 2024 were 2.35%, 11.98%, 1.76%, and 0.60% respectively, with R&D expenses rising due to significant investments [1]. - The company has invested 12.5 million yuan in collaboration with Zhejiang Dingchang Pharmaceutical for the development of an injectable acetic acid octreotide microsphere project [1]. Earnings Forecast - The report forecasts that Shengnuo Biotech's revenue will reach 5.54 billion yuan in 2024, 7.03 billion yuan in 2025, and 9.05 billion yuan in 2026, with year-on-year growth rates of 27.4%, 26.8%, and 28.7% respectively [6]. - The net profit attributable to the parent company is expected to be 1.01 billion yuan in 2024, 1.20 billion yuan in 2025, and 1.41 billion yuan in 2026, with corresponding growth rates of 43.3%, 19.0%, and 17.2% [6]. - The report provides a projected PE ratio of 22.9 for 2024, 19.3 for 2025, and 16.5 for 2026, indicating a favorable valuation trend [6].