Investment Rating - The report maintains a "Buy" rating for the company with a target price of HK43.50 [2][4][8]. Core Insights - The company is expected to achieve a revenue CAGR of approximately 30% from 2024 to 2026, driven by strong market demand for its products [2][3]. - The company reported a significant increase in product revenue for 1H24, reaching RMB 3.81 billion, a year-on-year growth of 55.1% [2][6]. - The gross margin for 1H24 was 84.1%, an increase of 1.8 percentage points compared to the previous year, attributed to rising sales and decreasing production costs [2][3]. - The company has multiple key products in the cardiovascular and metabolic (CVM) fields awaiting approval, which are considered crucial for future growth [2][3]. Financial Summary - The company's revenue is projected to grow from RMB 6,206 million in 2023 to RMB 12,948 million by 2026, with a gross profit increasing from RMB 5,070 million to RMB 10,667 million over the same period [1][12]. - The net profit is expected to turn positive by 2025, reaching RMB 1,004 million, and further increasing to RMB 2,508 million by 2026 [1][12]. - The earnings per share (EPS) is forecasted to improve from a loss of RMB 0.66 in 2023 to a profit of RMB 1.61 by 2026 [1][12]. Valuation Analysis - The report employs a two-stage DCF valuation method, resulting in a target price of HK$61.98, which corresponds to a 2025 enterprise value/revenue multiple of 7.7x, significantly higher than the comparable company average of 4.0x [8][9]. - The WACC used in the valuation is 10.2%, with a perpetual growth rate of 3% [8][9].
信达生物：多元产品组合提升运营效率和财务表现