Youcare Pharmaceutical (SH:688658) KAIYUAN SECURITIES·2024-08-22 15:00Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company is entering a new stage with stable growth in existing products and potential for new product launches [1][3] - In H1 2024, the company achieved revenue of 1.95 billion yuan, a decrease of 11.36% year-on-year, and a net profit attributable to shareholders of 119 million yuan, down 42.75% year-on-year [2][3] - The company maintains a positive long-term outlook, with profit forecasts for 2024-2026 being 320 million, 408 million, and 548 million yuan respectively, with corresponding EPS of 0.71, 0.91, and 1.22 yuan [2][3] Financial Performance Summary - Revenue for 2024 is projected at 4.422 billion yuan, with a year-on-year growth of 5.4% [4] - The gross margin is expected to be 59.5% in 2024, down from 62.7% in 2023, while the net margin is projected at 7.3% [4] - The company’s P/E ratios for 2024, 2025, and 2026 are estimated at 23.2, 18.2, and 13.6 respectively [4] R&D and Product Pipeline - The company has established nine core R&D platforms, focusing on various fields including nucleic acid drugs and traditional Chinese medicine [3] - Key product applications are progressing, with NDA applications for several products received by CDE, expected to contribute to revenue growth in the next 3-5 years [3] Market Position and Valuation - The current market capitalization of the company is 8.442 billion yuan, with a trading price of 18.76 yuan per share [1] - The company has a three-month turnover rate of 44.16%, indicating active trading [1]