SNSW(SH:688117) Huafu Securities·2024-08-02 00:30Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 20% relative to the market benchmark within the next six months [10]. Core Views - The company achieved a revenue of 199 million yuan in the first half of 2024, representing a year-on-year growth of 14.4%, with a net profit attributable to the parent company of 22 million yuan, up 8.1% year-on-year [2][3]. - The second quarter of 2024 saw a revenue of 95 million yuan, a 2.8% increase year-on-year, while the net profit attributable to the parent company decreased by 13.1% to 5.315 million yuan [2]. - The company is experiencing significant growth in both formulation and raw material drug businesses, with formulation sales increasing by 48.3% and overseas raw material sales rising by 97.5% year-on-year [3]. Financial Performance and Projections - The company’s R&D investment totaled 24.39 million yuan in the first half of 2024, a 56.4% increase year-on-year, driven by collaborations and new project developments [4]. - The company expects net profits for 2024, 2025, and 2026 to be 100 million yuan, 138 million yuan, and 166 million yuan respectively, with year-on-year growth rates of 42%, 39%, and 21% [5]. - Revenue projections for 2024, 2025, and 2026 are 549 million yuan, 710 million yuan, and 876 million yuan, reflecting growth rates of 26%, 29%, and 23% respectively [5]. Capacity Expansion and Future Outlook - The company has successfully completed key projects, including the "Engineering Technology Center Upgrade Project," which will support R&D activities for the next 3-5 years [4]. - The main construction of several projects, including a 395 kg peptide raw material production line and a formulation industrialization technology renovation project, has been completed and is now in the equipment debugging phase [4]. - The report emphasizes the potential for sustained revenue growth as new production capacities come online [4].