NHWA(SZ:002262) CSC SECURITIES (HK) LTD·2024-10-09 07:13Investment Rating - The report assigns a "Buy" rating for the company, indicating a positive outlook for its stock performance [3][4]. Core Insights - The anesthetics segment is experiencing rapid revenue growth, with its revenue share increasing from 50.6% in 2022 to 55.1% in the first half of 2024. The high gross margin of 87.2% in this segment is expected to enhance the company's overall profitability [3][4]. - The company is anticipated to see a revenue acceleration in the second half of 2023, despite a temporary slowdown due to a national anti-corruption campaign affecting hospital operations. Recovery in treatment volumes is expected to support revenue growth [3][4]. - The company has a robust pipeline with over 70 research projects and a 23.9% increase in R&D spending to RMB 610 million. This positions the company for long-term growth with multiple innovative drug projects in various stages of clinical trials [3][4]. Financial Projections - The company is projected to achieve net profits of RMB 1.26 billion, RMB 1.51 billion, and RMB 1.80 billion for the years 2024, 2025, and 2026, respectively, reflecting year-over-year growth rates of 21.0%, 20.0%, and 19.5% [4][5]. - Earnings per share (EPS) are expected to be RMB 1.25, RMB 1.49, and RMB 1.79 for the same years, with corresponding price-to-earnings (P/E) ratios of 23x, 19x, and 16x, indicating a reasonable valuation [4][5]. - Revenue forecasts for the company are set at RMB 6.02 billion for 2024, RMB 7.11 billion for 2025, and RMB 8.26 billion for 2026, with a steady increase in operating profit and net profit margins [5][6].