TASLY(SH:600535) Orient Securities·2024-08-27 09:50Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 15.01 CNY based on a 19x P/E ratio for 2024 [2][3]. Core Insights - The company's performance showed slight pressure, with a revenue of 4.372 billion CNY in the first half of 2024, a year-on-year decline of 0.5%. However, the pharmaceutical industrial segment grew steadily, achieving a revenue of 3.896 billion CNY, up 4.6% year-on-year [1]. - Profitability improved with a gross margin of 67.5% and a net profit margin of 16.8%, both showing increases of 1.3 and 1.1 percentage points respectively compared to the previous year [1]. - The company is undergoing a change in control as it transfers 28% of its shares to China Resources Sanjiu, which is expected to enhance its competitive edge through improved management and marketing resources [1]. Financial Performance Summary - For the first half of 2024, the company reported a net profit attributable to shareholders of 666 million CNY, down 6.3% year-on-year, while the non-recurring net profit increased by 6.3% to 735 million CNY [1]. - The company’s R&D investment reached 470 million CNY, a 3.5% increase year-on-year, with a pipeline of 101 products under development, including 40 innovative drugs [1]. - The forecast for earnings per share (EPS) is adjusted to 0.79 CNY for 2024, 0.88 CNY for 2025, and 0.96 CNY for 2026, reflecting a downward revision due to factors like centralized procurement and fluctuations in raw material prices [2][5].