Hengrui Pharma(SH:600276)2024-08-22 08:30Investment Rating - The report maintains a "Buy" rating for the company [2][3] Core Views - The company achieved impressive growth in H1 2024, with operating revenue of RMB 13.601 billion, a year-on-year increase of 21.78%, and a net profit attributable to shareholders of RMB 3.432 billion, up 48.67% year-on-year [2] - The company is expanding its R&D pipeline and enhancing its international market presence, with multiple innovative drugs entering clinical stages [2] - The company has established a mature platform for various drug types and has 13 self-developed innovative molecules in clinical stages, indicating a diversified product layout [2] Summary by Sections Financial Performance - In H1 2024, the company reported operating revenue of RMB 13.601 billion, a 21.78% increase year-on-year, and a net profit of RMB 3.432 billion, reflecting a 48.67% growth [2] - R&D investment reached RMB 3.860 billion in H1 2024, with a R&D expense ratio of 22.34% [2] - The revenue from innovative drugs was RMB 6.612 billion, marking a 33% year-on-year increase [2] International Expansion - The company recognized EUR 160 million from Merck Healthcare as revenue, contributing to performance growth [2] - The licensing of GLP-1 products to Hercules in the U.S. is expected to further enhance revenue [2] - The company has applied for 2,527 invention patents globally, indicating a strong focus on innovation [2] Product Development - The company has developed 12 differentiated new ADC molecules, with three products entering Phase III clinical trials [2] - The innovative product pipeline is expected to generate significant revenue growth in the future [2] Valuation - The profit forecast for 2024-2026 is adjusted, with expected net profits of RMB 5.593 billion, RMB 6.704 billion, and RMB 7.975 billion respectively [3] - The EPS for the same period is projected to be RMB 0.88, RMB 1.05, and RMB 1.25, with corresponding P/E ratios of 48.3x, 40.3x, and 33.8x [3]