LIVZON GROUP(SZ:000513) Guotai Junan Securities·2024-09-02 05:57Investment Rating - The report maintains a "Buy" rating for the company [4][6]. Core Views - The chemical and traditional Chinese medicine segments are under short-term pressure, but several innovative products are expected to offset the impact of centralized procurement, maintaining double-digit profit growth for the year [3]. - The company achieved revenue of 6.282 billion yuan (down 6.1%) and a net profit attributable to shareholders of 1.171 billion yuan (up 3.2%) in H1 2024, with performance in line with expectations [4]. - The company continues to repurchase shares, reflecting confidence in future development [4]. Financial Summary - For H1 2024, the company reported revenue of 6.282 billion yuan, a decrease of 6.1%, and a net profit of 1.171 billion yuan, an increase of 3.2% [4]. - The second quarter of 2024 saw revenue of 3.040 billion yuan (down 7.2%) and a net profit of 563 million yuan (up 1.9%) [4]. - The company forecasts EPS for 2024-2026 to be 2.40, 2.70, and 3.09 yuan, respectively, with a target price of 43.96 yuan, corresponding to a PE of 18X for 2024 [4][6]. Business Segment Performance - The chemical preparation segment generated revenue of 3.224 billion yuan (down 7.4%), with a gross margin increase to 81.2% [4]. - The traditional Chinese medicine segment reported revenue of 745 million yuan (down 21.9%), affected by fluctuations in virus infection rates [4]. - The diagnostic reagents and equipment segment achieved revenue of 394 million yuan (up 32.3%), with rapid expansion in sales channels for infectious diseases [4]. Innovation and Development - The company is actively advancing innovative drugs and high-end formulations, with significant market potential for products like Triptorelin microspheres [4]. - The company has submitted an NDA for Semaglutide for type 2 diabetes and is preparing for phase III trials for weight loss indications [4].