NHWA(SZ:002262) GF SECURITIES·2024-08-09 10:01Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 34.01 CNY per share, indicating an expected strong performance relative to the market over the next 12 months [3][10]. Core Views - The company reported a solid revenue growth of 15.1% year-on-year for the first half of 2024, achieving a revenue of 2.763 billion CNY and a net profit of 629 million CNY, which is a 15.5% increase [1]. - The product mix is continuously optimized, with significant growth in anesthetic products, which generated 1.522 billion CNY in revenue, reflecting a 20.0% increase [1]. - The company is focusing on the central nervous system market and increasing R&D investments, with over 20 innovative drug projects currently in development [1]. Financial Summary - For the first half of 2024, the company achieved a net cash flow from operating activities of 622 million CNY, a substantial increase of 39.5% [1]. - The company’s sales expenses increased by 6.0% to 830 million CNY, while the sales expense ratio decreased by 2.8 percentage points to 36.7% of formulation revenue [1]. - The forecasted EPS for 2024, 2025, and 2026 are 1.22 CNY, 1.45 CNY, and 1.74 CNY per share, respectively, with a projected net profit growth rate of 18.8% in 2024 [2][1].