EASTONBIOPHARMACEUTICALS(SH:688513) Tai Ping Yang·2024-08-21 05:30Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative increase in stock price of over 15% compared to the CSI 300 index in the next six months [2][6]. Core Insights - The company reported a revenue of 670 million yuan for the first half of 2024, representing a year-on-year growth of 20.56%. The net profit attributable to shareholders was 146 million yuan, up 11.38% year-on-year [1]. - The domestic formulation business has shown rapid growth, driven by both existing products and newly approved high-end formulations, which have contributed significantly to revenue [1][2]. - The company has launched eight new high-end formulation products this year, including various injectable medications, which are expected to continue driving growth in the formulation business [1][2]. Financial Summary - Revenue projections for 2024-2026 are 1.373 billion yuan, 1.671 billion yuan, and 2.040 billion yuan, with year-on-year growth rates of 22.94%, 21.66%, and 22.09% respectively [2][3]. - The net profit attributable to shareholders is projected to be 277 million yuan, 338 million yuan, and 413 million yuan for the same period, with growth rates of 22.13%, 22.17%, and 22.11% respectively [2][3]. - The earnings per share (EPS) are expected to be 1.57 yuan, 1.92 yuan, and 2.34 yuan for 2024, 2025, and 2026, corresponding to price-to-earnings (PE) ratios of 21, 18, and 14 times [2][3]. Business Performance - The company's formulation business achieved revenue of 565 million yuan in the first half of 2024, with a year-on-year growth of 27.77%, accounting for 84.38% of total revenue [1]. - The overall gross margin decreased by 4.32 percentage points to 77.73% due to a decline in high-margin technical service income [1][4]. - The company has successfully mitigated risks associated with existing formulation products, leading to continued growth during the reporting period [1].