Hengrui Pharma(SH:600276) Guotai Junan Securities·2024-08-22 02:38Investment Rating - The report maintains an "Accumulate" rating for 恒瑞医药 (600276) with a target price of 53.55 RMB, unchanged from the previous forecast [1][3]. Core Views - The company's revenue and net profit showed significant growth in H1 2024, with revenue reaching 13.601 billion RMB, a year-on-year increase of 21.78%, and net profit attributable to shareholders at 3.432 billion RMB, up 48.67% [3]. - The growth is attributed to the rapid expansion of innovative drugs and the successful internationalization of products, with a notable contribution from a 160 million Euro licensing fee from Merck Healthcare, equivalent to approximately 1.27 billion RMB [3]. - The report highlights that the domestic performance remains stable, with innovative drug revenue reaching 6.612 billion RMB in H1 2024, a 33% increase year-on-year [3]. Financial Summary - For H1 2024, the company reported revenue of 13.601 billion RMB, net profit of 3.432 billion RMB, and net profit excluding non-recurring items of 3.490 billion RMB, reflecting substantial growth [3]. - The forecast for EPS for 2024-2026 is maintained at 0.90, 1.08, and 1.27 RMB respectively, with a corresponding PE ratio of 60X for 2024 [3][4]. - The financial outlook shows a steady increase in revenue, with projections of 26.823 billion RMB for 2024, 31.165 billion RMB for 2025, and 36.103 billion RMB for 2026, indicating a compound annual growth rate [4][11]. Research and Development - The company increased its R&D investment to 3.860 billion RMB in H1 2024, a 26% year-on-year increase, indicating a commitment to innovation [3]. - Several innovative products are nearing market readiness, including PD-L1 inhibitors and opioid analgesics, with multiple candidates in the NDA and Phase III clinical stages [3]. Market Position and Catalysts - The report identifies potential catalysts for growth, including unexpected market expansion, new product approvals, and progress in international markets [3]. - The company is positioned to benefit from the increasing demand for innovative drugs and the successful execution of its international strategy [3].