Hengrui Pharma(SH:600276) SINOLINK SECURITIES·2024-08-22 06:00Investment Rating - The report maintains a "Buy" rating for the company, anticipating significant revenue growth in the coming years [3][4]. Core Insights - The company's innovative drug business has driven rapid revenue growth, with a reported revenue of 13.601 billion RMB in the first half of 2024, representing a year-on-year increase of 21.78%. The net profit attributable to shareholders reached 3.432 billion RMB, up 48.67% [2][3]. - The company is experiencing a successful transformation towards innovation, with innovative drug revenue reaching 6.612 billion RMB in the first half of 2024, a 33% increase year-on-year, accounting for 48.61% of total revenue [3]. - International expansion is progressing, with significant agreements in place, including a deal with Hercules for the development and commercialization of GLP-1 products outside Greater China, which includes upfront payments and milestone payments totaling up to 2.1 billion USD [3]. Summary by Sections Performance Overview - In the first half of 2024, the company reported a revenue of 13.601 billion RMB, a 21.78% increase, and a net profit of 3.432 billion RMB, reflecting a 48.67% growth [2]. - The innovative drug revenue reached 6.612 billion RMB, a 33% increase year-on-year, significantly contributing to overall revenue [3]. International Expansion - The company is advancing its international clinical trials, with multiple Phase III studies ongoing for its products. Additionally, three ADC products have received Fast Track Designation from the FDA [3]. - The agreement with Hercules includes upfront payments of 110 million USD and potential milestone payments totaling up to 5.725 billion USD, along with a 19.9% equity stake in Hercules [3]. Financial Projections - Revenue projections for 2024, 2025, and 2026 are estimated at 26.752 billion RMB, 31.835 billion RMB, and 38.202 billion RMB, respectively, with year-on-year growth rates of 17.23%, 19.00%, and 20.00% [3][6].