Kawin Technology(SH:688687) Minsheng Securities·2024-08-11 04:30Investment Rating - The report maintains a "Recommended" rating for the company [1]. Core Views - The company achieved a revenue of 597 million yuan in the first half of 2024, representing a year-on-year increase of 4.89%, and a net profit attributable to shareholders of 42.4 million yuan, up 10.54% year-on-year [1]. - The growth was primarily driven by the strong sales of the product 凯力唯, which generated 390 million yuan in revenue, a year-on-year increase of 37.35% [1]. - The company is actively responding to centralized procurement challenges to maintain market share for mature products, with a revenue of 201 million yuan from biological drugs, down 26.61% year-on-year [1]. - Research and development (R&D) investment increased by 25.67% year-on-year to 70.55 million yuan, accounting for 11.83% of revenue [1]. - The sales expense ratio significantly decreased by 6.06 percentage points to 52.35%, indicating improved operational efficiency [1]. - Future revenue projections are 1.625 billion yuan for 2024, 2.015 billion yuan for 2025, and 2.566 billion yuan for 2026, with corresponding net profits of 141 million yuan, 183 million yuan, and 245 million yuan respectively [2][4]. Summary by Sections Financial Performance - In Q2 2024, the company reported a revenue of 384 million yuan, a year-on-year increase of 2.10% and a quarter-on-quarter increase of 80.51% [1]. - The net profit for Q2 2024 was 30.64 million yuan, up 44.13% year-on-year and 23.45% quarter-on-quarter [1]. R&D Progress - The company has several projects in various stages of clinical trials, including KW-001, KW-045, KW-053, and KW-051, with significant progress reported [1]. - The company applied for 1 invention patent and received 2 invention patent authorizations in the first half of 2024 [1]. Market Strategy - The company is focusing on expanding its market presence in the hepatitis C sector through collaborations with liver disease experts and targeting county-level markets [1]. - The report highlights the importance of maintaining market share amid centralized procurement initiatives across nearly 30 provinces in China [1].