Jiangsu Jibeier Pharmaceutical (688566) 东吴证券·2024-09-02 16:36Investment Rating - The report maintains a "Buy" rating for the company [1] Core Insights - In the first half of 2024, the company achieved total revenue of 434 million yuan (+3.55% year-on-year) and a net profit attributable to shareholders of 122 million yuan (+26.74%) [2] - The second quarter of 2024 saw total revenue of 239 million yuan (-5.54%) and a net profit of 69 million yuan (+19.30%) [2] - The high growth of the drug Niquinol tablets is noted, while the growth of Licorice tablets has slightly decreased due to a high base effect from the previous year [2] - The company’s gross profit margin improved to 89.65% (+0.74 percentage points) and net profit margin to 28.10% (+5.16 percentage points) in the first half of 2024 [2] - The report forecasts net profits of 270 million yuan, 336 million yuan, and 424 million yuan for 2024, 2025, and 2026 respectively, with corresponding P/E ratios of 15, 12, and 9 times [2] Financial Performance Summary - Total revenue for 2022 was 654.73 million yuan, increasing to an estimated 1,004.01 million yuan in 2024, representing a year-on-year growth of 16.62% [1] - Net profit attributable to shareholders was 154.67 million yuan in 2022, projected to reach 269.66 million yuan in 2024, reflecting a growth of 23.08% [1] - The latest diluted EPS is expected to be 1.37 yuan per share in 2024, up from 1.11 yuan in 2023 [1] Expense and Profitability Analysis - The sales expense ratio decreased to 45.39% in the first half of 2024, indicating a reduction in promotional activities [2] - R&D expense ratio also declined to 4.01% due to the capitalization of some R&D costs as new drugs enter the clinical phase [2] - The company is expected to continue optimizing sales and reducing expenses, which may lead to further profit margin improvements [2]