Fuan Pharmaceutical(SZ:300194) Xinda Securities·2024-09-03 07:42Investment Rating - The investment rating for the company is "Buy" [1]. Core Views - The company, Fuan Pharmaceutical, is an integrated generic pharmaceutical enterprise focusing on both active pharmaceutical ingredients (APIs) and formulations, with over 60% of its revenue coming from the formulation segment [1][5]. - The company has a diverse product portfolio, including antibiotics, anti-tumor drugs, and specialty drugs, with significant participation in national centralized procurement [1][5]. - The company has shown stable revenue growth, with a projected increase in net profit due to the successful bidding in national procurement and a reduction in sales expense ratios [1][7][9]. Summary by Sections Company Overview - Fuan Pharmaceutical was established in 2004 and went public in 2011, developing a full industry chain from R&D to sales in the pharmaceutical sector [5]. - The company’s main products include various antibiotics and anti-tumor drugs, contributing significantly to its overall revenue [5][6]. Financial Performance - In 2023, the company reported a revenue of 16.11 billion yuan from its formulation segment, accounting for 60.8% of total revenue, with a year-on-year growth of 28.57% in net profit [1][2]. - The company’s revenue has remained stable between 2.3 billion to 2.8 billion yuan from 2018 to 2023, with a notable increase in net profit in 2024 [7][8]. Business Segments - The formulation business has expanded from antibiotics to multiple therapeutic areas, benefiting from centralized procurement [1][11]. - The API segment also showed steady growth, with a revenue of 8.60 billion yuan in 2023, representing a year-on-year increase of 12.28% [1][11]. R&D and Product Development - The company invested approximately 180 million yuan in R&D in 2023, with around 70 products in the registration process, indicating a strong pipeline for future growth [1][9]. - The company’s R&D efforts have led to over 20 new API products entering the registration process, enhancing its product offerings [1][11]. Subsidiary Performance - Key subsidiaries such as Ningbo Tianheng and Hubei Renmin have shown stable revenue contributions, with Ningbo Tianheng maintaining a revenue of 600-700 million yuan over the past five years [1][14]. - The company has effectively managed its historical acquisition burdens, reducing goodwill from 1.32 billion yuan in 2017 to 260 million yuan by the end of 2023 [1][9].