Wolwo Pharma(SZ:300357) Guotai Junan Securities·2024-08-24 14:19Investment Rating - The report maintains a "Buy" rating for the company [4][5]. Core Views - The company experienced a slowdown in growth in Q2 2024 due to a high base effect, but a recovery is expected in Q3 2024 based on a low base from Q3 2023. The market promotion results of the Artemisia annua drop are anticipated to be validated in Q3 2024, supporting the "Buy" rating [3][4]. Financial Performance Summary - In H1 2024, the company achieved revenue of 429 million yuan, a year-on-year increase of 11.1%. The net profit attributable to shareholders was 149 million yuan, up 0.4%, while the net profit excluding non-recurring items was 142 million yuan, down 0.7% [4]. - For Q2 2024, the company reported revenue of 213 million yuan, a 4.9% increase year-on-year, but a decline in net profit by 7.8% to 72 million yuan, primarily due to a high base in Q2 2023 and increased expenses [4][5]. - The revenue growth in Q2 2024 was slower compared to Q1, and Q3 is expected to be the highest revenue quarter due to a low base effect from Q3 2023, where revenue declined by 7.6% [4]. Product Development and Market Potential - The Artemisia annua drop achieved revenue of 12.27 million yuan in H1 2024, a significant year-on-year growth of 104%. In Q2 2024, it generated 5.79 million yuan, a 72% increase year-on-year [4]. - The company has made progress in overcoming market promotion challenges for the Artemisia annua drop, with new indications approved in May 2023 and patient assistance programs launched in late 2023 [4]. - The company is expanding its product line with the introduction of new puncture products, which are expected to contribute to sales growth alongside existing treatment products [4].