HUADONG MEDICINE(000963) 东吴证券·2024-08-16 11:30Investment Rating - Buy (Maintained) [1] Core Views - The company achieved a revenue of 20.965 billion yuan (+2.84%) and a net profit attributable to the parent company of 1.696 billion yuan (+18.29%) in the first half of 2024 [3] - The pharmaceutical industry segment maintained a steady growth of over 10%, while the pharmaceutical commerce segment experienced a slight decline [3] - The medical aesthetics business achieved a revenue growth of over 10%, with domestic medical aesthetics contributing significantly [3] - The company has a rich pipeline of 129 R&D projects, with 86 being innovative products and biosimilars, providing a foundation for long-term growth [4] Financial Performance - Revenue for 2024H1: 20.965 billion yuan (+2.84%) [3] - Net profit attributable to the parent company for 2024H1: 1.696 billion yuan (+18.29%) [3] - Revenue for Q2 2024: 10.554 billion yuan (+2.76%) [3] - Net profit attributable to the parent company for Q2 2024: 834 million yuan (+22.85%) [3] Segment Performance - Pharmaceutical Industry: Revenue of 6.698 billion yuan (+10.63%), net profit of 1.385 billion yuan (+11.48%) [3] - Pharmaceutical Commerce: Revenue of 13.552 billion yuan (-0.58%), net profit of 218 million yuan (+0.90%) [3] - Medical Aesthetics: Revenue of 1.348 billion yuan (+10.14%), with domestic medical aesthetics contributing 618 million yuan (+19.78%) [3] R&D and Innovation - Total R&D projects: 129, including 86 innovative products and biosimilars [4] - Key areas of focus: Endocrinology, autoimmune diseases, and oncology [4] - Recent approvals: Liraglutide injection for type 2 diabetes and obesity in 2023, and application for recurrent pericarditis in March 2024 [4] Financial Forecasts - Revenue forecast for 2024-2026: 43.511 billion yuan, 47.734 billion yuan, 52.180 billion yuan [2] - Net profit attributable to the parent company forecast for 2024-2026: 3.348 billion yuan, 3.916 billion yuan, 4.561 billion yuan [4] - EPS forecast for 2024-2026: 1.91 yuan, 2.23 yuan, 2.60 yuan [2] Valuation Metrics - Current P/E ratio: 14.95x (2024E), 12.78x (2025E), 10.97x (2026E) [2] - Current P/B ratio: 2.14x (2024E), 1.83x (2025E), 1.57x (2026E) [9] - ROE forecast for 2024-2026: 14.28%, 14.32%, 14.29% [9]