Lingrui Pharma(SH:600285) Zhongyuan Securities·2024-08-15 08:30Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected price increase of over 15% relative to the CSI 300 index within the next six months [1][10]. Core Views - The company has shown better-than-expected profit growth, with a steady increase in performance anticipated. In the first half of 2024, the company achieved a revenue of 1.906 billion yuan, representing a year-on-year growth of 12.07%, and a net profit of 413 million yuan, up 30.30% year-on-year [1][2]. - The company's gross margin improved to 76.04%, an increase of 0.72 percentage points compared to the previous year, attributed to automation improvements, better raw material cost control, and increased sales of high-margin products [1][2]. - The company is focusing on expanding its product matrix in the orthopedic pain relief sector, with significant growth expected in its unique products included in national medical insurance directories [1][2]. Summary by Sections Financial Performance - The company reported a revenue of 3.311 billion yuan in 2023, with a projected increase to 3.808 billion yuan in 2024, reflecting a growth rate of 14.98% [4][8]. - Net profit for 2023 was 568 million yuan, expected to rise to 707 million yuan in 2024, indicating a growth rate of 24.34% [4][8]. - Earnings per share (EPS) are projected to be 1.25 yuan in 2024, increasing to 1.68 yuan by 2026 [3][8]. Product Segments - The company’s main revenue sources include orthopedic patches, which are expected to generate over 1 billion yuan in revenue in 2023, and oral medications like Peiyuan Tongnao capsules, which are also seeing significant sales growth [2][4]. - The pediatric segment is being developed under the "Little Antelope" brand, with ongoing innovations to enhance product offerings [2]. Market Position and Strategy - The company is the only domestic producer of fentanyl transdermal patches, which are anticipated to see increased market penetration due to their advantages over injectable forms [1][2]. - The company is actively expanding its oral medication product line, with new products expected to contribute to future revenue growth [2][4].