WEIGUANG BIOLOGICAL(SZ:002880) Huaan Securities·2024-08-15 10:37Investment Rating - The investment rating for the company is "Buy" [1][3]. Core Views - The entry of China National Pharmaceutical Group (Sinopharm) as a major shareholder is expected to enhance the company's resources and support, boosting its competitiveness and innovation in the biopharmaceutical sector [1][14]. - The company has shown continuous revenue growth, with revenue increasing from 623 million yuan in 2017 to 1.048 billion yuan in 2023, representing a CAGR of 9.05% [1][18]. - The company’s blood products account for approximately 80% of total revenue, with significant growth in the sales of human albumin and immunoglobulin [1][18]. Summary by Sections Company Overview - Established in 1985, the company focuses on blood products and has become a leading player in the domestic market with a high plasma utilization rate and a strong R&D capability [1][9]. - The company’s main products include human albumin, immunoglobulin, and coagulation factors, with a total of 11 varieties and 23 specifications [1][12]. Financial Performance - Revenue for 2023 was 1.049 billion yuan, with a year-on-year growth of 57% [3][5]. - The net profit attributable to the parent company for 2023 was 219 million yuan, reflecting an 86.1% increase year-on-year [5][19]. - The gross profit margin for 2023 was 41.3%, with a net profit margin of 20.75% [5][19]. Market and Industry Trends - The blood products market in China is experiencing rapid growth, with the market size increasing from 28.3 billion yuan in 2018 to 51.2 billion yuan in 2022, representing a CAGR of 15.98% [24]. - The demand for blood products is expected to continue growing due to increasing healthcare awareness and an aging population [24][25]. Future Outlook - Revenue projections for 2024-2026 are estimated at 1.149 billion yuan, 1.308 billion yuan, and 1.478 billion yuan, respectively, with corresponding net profits of 236 million yuan, 267 million yuan, and 304 million yuan [3][5]. - The company is actively pursuing new product development, with several projects in the pipeline expected to positively impact future performance [2][3].