ZHONGSHENGYAOYE(SZ:002317) Guotou Securities·2024-09-02 12:00Investment Rating - The report assigns a "Buy-A" investment rating to the company with a 6-month target price of 16.85 CNY per share [1][4][11]. Core Views - The company reported a revenue of 1.364 billion CNY for the first half of 2024, a decrease of 7.96% year-on-year, and a net profit of 87 million CNY, down 58.09% year-on-year [2][3]. - The early clinical data for the GLP-1R/GCCR dual-target peptide RAY1225 shows significant weight loss in obese subjects, indicating a differentiated advantage with bi-weekly dosing compared to the weekly dosing of competitors [2][3]. - The innovative drug, the flu medication Anladiwei, is expected to be approved for market release, with potential to contribute to revenue growth in the coming years [2][3]. Financial Summary - The company’s projected revenues for 2024, 2025, and 2026 are 3.007 billion CNY, 3.494 billion CNY, and 3.977 billion CNY, respectively, with corresponding net profits of 239 million CNY, 411 million CNY, and 532 million CNY [3][5][11]. - The earnings per share (EPS) are expected to be 0.28 CNY, 0.48 CNY, and 0.62 CNY for the years 2024, 2025, and 2026, respectively [3][5][11]. - The report anticipates a price-to-earnings (PE) ratio of 40.3, 23.4, and 18.1 for the years 2024, 2025, and 2026, respectively [5][11]. Revenue Breakdown - The company’s revenue from traditional Chinese medicine is projected to be 1.6 billion CNY in 2024, with a gross margin of 65% [7][8]. - The innovative drug segment is expected to generate revenues of 1.4 billion CNY in 2024, with a gross margin of 95% [7][8]. - The chemical generic drug business is projected to have revenues of 9.8 billion CNY in 2024, maintaining a gross margin of 50% [7][8].