JUMPCAN(600566) Great Wall Securities·2024-09-02 06:45Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 15% relative to the industry index in the next six months [1][6][14]. Core Insights - The company's H1 2024 performance showed a decline in revenue and net profit, with revenue at 4.034 billion yuan, down 12.84% year-on-year, and net profit at 1.338 billion yuan, down 0.11% year-on-year. This decline is attributed to high base effects from respiratory products and the impact of centralized procurement on certain products [2][6]. - The company has a strong competitive advantage in its core products, which have been included in multiple treatment guidelines and consensus documents. Notably, its main products, Pudilan Xiaoyan Oral Liquid and Children's Chiqiao Qingre Granules, hold significant market shares in their respective segments [2][3]. - The company is actively advancing its research and development (R&D) and business development (BD) initiatives, with several products receiving production approvals and entering various stages of clinical trials [2][3]. Financial Summary - For 2024E, the company is projected to achieve revenue of 8.738 billion yuan and a net profit of 2.856 billion yuan, reflecting a year-on-year growth of 1.2% [1][6]. - The company's earnings per share (EPS) for 2024E is estimated at 3.10 yuan, with corresponding price-to-earnings (P/E) ratios of 9.4X for 2024E, 8.4X for 2025E, and 7.4X for 2026E [1][6][10]. - The report highlights a decrease in the sales expense ratio to 39.91%, down 3.33 percentage points year-on-year, indicating improved cost management [2][6].