JINGXIN(SZ:002020)2024-08-15 13:30Investment Rating - The report maintains a "Buy" rating for the company [3][4] Core Views - The company reported a strong profit growth in Q2 2024, with a net profit of 231 million RMB, representing a year-on-year increase of 40.18% [3] - The company's revenue for H1 2024 reached 2.15 billion RMB, a year-on-year growth of 11.02% [3] - The marketing model adjustments have shown effectiveness, leading to rapid growth in both hospital and retail markets [3] - The company is entering a new development phase characterized by a combination of innovative and generic drug strategies [3] Summary by Sections Financial Performance - H1 2024 revenue: 2.15 billion RMB, up 11.02% YoY - H1 2024 net profit: 402 million RMB, up 27.28% YoY - Q2 2024 net profit: 231 million RMB, up 40.18% YoY [3][4] Revenue Breakdown - Finished drug revenue for H1 2024: 1.30 billion RMB, up 17.13% YoY - API revenue: 501 million RMB, up 5.66% YoY - Medical device revenue: 312 million RMB, up 0.46% YoY [3] Future Projections - Expected net profits for 2024-2026: 740 million RMB, 843 million RMB, and 965 million RMB respectively - EPS projections for 2024-2026: 0.86 RMB, 0.98 RMB, and 1.12 RMB respectively - PE ratios for 2024-2026: 12.5x, 11.0x, and 9.6x respectively [4][3] Market Strategy - The company is expanding its market presence by targeting both high-tier hospitals and grassroots healthcare markets - Strategic partnerships with chain pharmacies are being deepened to enhance market penetration [3] R&D and Capacity Expansion - The company is actively investing in capacity expansion and R&D, focusing on the integration of intermediates, APIs, and formulations - The first innovative drug, Jinnoning® (Dazatinib capsules), has been successfully commercialized [3]