Hengrui Pharma(SH:600276) Guotou Securities·2024-08-22 10:03Investment Rating - The investment rating for the company is "Accumulate - A" with a target price of 55.09 CNY per share, maintaining the rating [3][7]. Core Views - The company's overseas expansion is beginning to contribute to revenue growth, with multiple new products entering the monetization phase. The reported revenue for the first half of 2024 was 13.601 billion CNY, a year-on-year increase of 21.78%, and the net profit attributable to shareholders was 3.432 billion CNY, up 48.67% [1][2]. - The company has received significant upfront payments from overseas licensing agreements, which are expected to be a major source of revenue growth in the future. For instance, the company recognized a 160 million Euro upfront payment from Merck Healthcare, translating to approximately 1.24 billion CNY [1][2]. - The innovative drug segment is expected to further enhance revenue contributions, with innovative drug revenue reaching 6.612 billion CNY in the first half of 2024, a 33% increase year-on-year. The company has several first-class new drugs approved and others in the NDA stage, which are anticipated to boost revenue further [2]. Summary by Sections Financial Performance - The company achieved a revenue of 13.601 billion CNY in the first half of 2024, a 21.78% increase year-on-year. The net profit attributable to shareholders was 3.432 billion CNY, reflecting a 48.67% increase [1]. - The innovative drug revenue for the first half of 2024 was 6.612 billion CNY, a 33% increase compared to the previous year [2]. Future Projections - Revenue growth rates are projected at 17.0%, 14.7%, and 15.7% for 2024, 2025, and 2026, respectively. Net profit growth rates are expected to be 36.1%, 14.2%, and 15.9% for the same periods [2]. Licensing Agreements - The company has entered into several overseas licensing agreements, including: 1. Licensing of EZH2 inhibitor SHR2554 to Treeline Biosciences in February 2023. 2. Licensing of TSLP monoclonal antibody SHR-1905 to One Bio in August 2023. 3. Licensing of TKI pyrotinib to Dr. Reddy's in October 2023. 4. Licensing of PD-1 inhibitor camrelizumab for liver cancer treatment to Elevar Therapeutics in October 2023. 5. Licensing of PARP1 inhibitor HRS-1167 to Merck in October 2023, with a 160 million Euro upfront payment. 6. Licensing of GLP-1 product portfolio to Hercules in May 2024 [1][10].