SNSW(SH:688117) Huaan Securities·2024-08-07 09:30Investment Rating - The investment rating for the company is "Accumulate" (maintained) [2] Core Views - The company has shown steady growth in its main business of APIs and formulations, with expectations for new capacity release [2] - The company reported a revenue of 199 million yuan for 1H24, a year-on-year increase of 14.44%, and a net profit attributable to shareholders of 22 million yuan, up 8.14% year-on-year [2] - The company’s formulation sales increased by 48.27% year-on-year, primarily due to successful bids for injection growth hormone and atosiban in June 2023 [2] - The company has completed the main construction of several projects, including a production line for 395 kg of peptide APIs, which is expected to drive future performance growth [2] Financial Summary - The company is projected to achieve revenues of 599 million yuan, 783 million yuan, and 882 million yuan for 2024, 2025, and 2026 respectively, representing year-on-year growth rates of 37.6%, 30.8%, and 12.6% [4][5] - The net profit attributable to shareholders is expected to reach 121 million yuan, 150 million yuan, and 184 million yuan for the same years, with growth rates of 71.4%, 24.6%, and 22.3% respectively [4][5] - The gross margin is projected to be 63.4% in 2024, decreasing slightly to 60.3% by 2026 [4][7] - The company’s return on equity (ROE) is expected to improve from 12.0% in 2024 to 13.7% in 2026 [4][7] Operational Highlights - The company has made significant progress in capacity construction, with new production capabilities expected to enhance growth opportunities [2] - The company has established a strong service advantage across the entire industry chain, with over 40 projects in peptide innovative drug CDMO services [2] - Two peptide innovative drugs have been approved for market, and one is in the production application stage, with 20 others in clinical trials [2]