Hengrui Pharma(SH:600276) Guohai Securities·2024-08-26 12:31Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company has experienced rapid growth in innovative drug revenue, with overseas expansion becoming a second growth engine [4][5] - In the first half of 2024, the company achieved operating revenue of 13.6 billion yuan, a year-on-year increase of 21.8%, and a net profit attributable to shareholders of 3.43 billion yuan, up 48.7% [3] - The innovative drug revenue reached 6.612 billion yuan, reflecting a 33% year-on-year growth despite challenges such as intensified competition and price reductions [4][5] Summary by Sections Financial Performance - The company reported a total revenue of 13.6 billion yuan in the first half of 2024, with a net profit of 3.43 billion yuan [3] - The innovative drug segment contributed significantly to revenue, with a total of 6.612 billion yuan, marking a 33% increase year-on-year [4] - The company has recognized a 160 million euro upfront payment from Merck Healthcare as revenue, further boosting performance metrics [4] Market Position - The company has faced pressure from the national drug procurement policy, with sales of certain products declining [4] - The stock is currently priced at 43.62 yuan, with a market capitalization of approximately 278.25 billion yuan [4] Future Outlook - Revenue projections for 2024-2026 are estimated at 26.3 billion, 30.1 billion, and 34.3 billion yuan, respectively, with net profits expected to reach 5.6 billion, 6.5 billion, and 7.7 billion yuan [5][6] - The report anticipates a continuous increase in the proportion of innovative drugs, with overseas sales becoming a significant growth driver [5]