Dongcheng Biochem(002675) 国联证券·2024-09-03 10:01Investment Rating - The investment rating for Dongcheng Pharmaceutical is maintained as "Buy" [4][7]. Core Insights - Dongcheng Pharmaceutical reported a revenue of 1.421 billion yuan for the first half of 2024, a year-on-year decrease of 20.41%, and a net profit attributable to shareholders of 112 million yuan, down 39.35% year-on-year [2][6]. - The nuclear medicine business remains stable, while revenue from heparin raw materials has declined significantly [6]. - The company has a robust product pipeline and production layout in the nuclear medicine sector, with multiple production centers operational and under construction [6]. Financial Performance - For the first half of 2024, the nuclear medicine segment generated revenue of 499 million yuan, a slight decrease of 0.58% year-on-year, while the heparin raw materials segment saw a revenue drop of 31.03% to 657 million yuan [6]. - The gross margin for the nuclear medicine business improved by 1.99 percentage points, while the heparin raw materials segment's gross margin increased by 1.23 percentage points despite the revenue decline [6]. - The forecasted revenues for 2024-2026 are 3.376 billion yuan, 3.628 billion yuan, and 3.869 billion yuan, with respective year-on-year growth rates of 3.08%, 7.46%, and 6.63% [7]. Business Outlook - The company is expected to maintain a leading position in the nuclear medicine market, with ongoing investments in production centers and a diverse range of products under development [6][7]. - The projected net profits for 2024-2026 are 314 million yuan, 366 million yuan, and 424 million yuan, with significant growth anticipated in 2024 at 49.69% year-on-year [7].