Investment Rating - The report maintains a "Buy" rating for the company, citing attractive valuations and the potential for multiple new drug approvals and pipeline data readouts [3][5] Core Views - The company reported H1 2024 revenue of RMB 16.284 billion (YoY +1.3%) and net profit attributable to shareholders of RMB 3.020 billion (YoY +1.8%), slightly below market expectations [2] - Gross margin improved by 1.7 percentage points to 71.6% in H1 2024 [2] - The pharmaceutical business grew by 4.8%, driven by core products in six major disease areas, while VC API and antibiotic API businesses declined by 5.4% and 6.4%, respectively [2] - R&D expenses reached RMB 2.542 billion in H1 2024, accounting for 18.8% of pharmaceutical revenue, with 19 projects in Phase II/III clinical trials and 7 projects under regulatory review [3] - The company is transitioning from a traditional pharmaceutical company to an innovative one, with multiple new drugs expected to be approved, driving future growth [3] Financial Performance - Revenue for 2024E is projected at RMB 32.747 billion, with a growth rate of 4.12% [4] - Net profit for 2024E is forecasted at RMB 6.218 billion, with a growth rate of 5.86% [4] - EPS for 2024E is estimated at RMB 0.52, with a P/E ratio of 10x [4] - The company's total assets are expected to grow from RMB 41.770 billion in 2022 to RMB 69.133 billion in 2026E [9] Business Segments - The pharmaceutical business generated revenue of RMB 13.55 billion in H1 2024, with CNS drugs contributing RMB 5.24 billion (YoY +15.0%) [3] - Anti-tumor products revenue declined by 10.2% to RMB 2.68 billion in H1 2024 [3] - Cardiovascular products revenue decreased by 4.5% to RMB 1.23 billion, while anti-infective, respiratory, and digestive/metabolic products showed mixed performance [3] R&D and Innovation - The company has a robust R&D pipeline, including platforms for nano-formulations, mRNA vaccines, ADCs, monoclonal antibodies, bispecific antibodies, and PROTACs [3] - Key products under regulatory review include omalizumab, batoclimab, and meloxicam nanocrystal injection in China, and irinotecan liposome and amphotericin B liposome in the US [3] Valuation and Forecast - The report revised down the 2024-2025 net profit forecasts to RMB 6.22 billion and RMB 6.55 billion, respectively, reflecting a 15.7% and 22.8% reduction from previous estimates [3] - The 2026E net profit is projected at RMB 6.90 billion, with a P/E ratio of 9x [3]
石药集团：2024半年报点评，业绩略低预期，创新转型可期