Salubris(002294) Orient Securities·2024-10-13 09:10Investment Rating - The report assigns an "Accumulate" rating to the company with a target price of 37.62 yuan based on a projected 66 times price-to-earnings ratio for 2024 [4][7]. Core Views - The company is a leading player in the cardiovascular field in China, focusing on innovative drug development and expanding its product pipeline. The impact of centralized procurement has largely cleared, allowing for a return to high growth in revenue [3][12]. - The company has a strong product lineup, with its flagship product, "Xinglitai" (Aliskiren), showing significant clinical recognition and sales recovery post-medical insurance negotiations [3][31]. - The company is actively exploring new fields, including nephrology, orthopedics, oncology, and small nucleic acid drugs, aiming to establish a second growth curve [3][4]. Summary by Sections Section 1: Expansion and Innovation - The company has been steadily expanding its presence in chronic disease management, particularly in cardiovascular treatments, with a rich pipeline of innovative products [3][12]. - The impact of centralized procurement on the company's performance has diminished, and it is expected to enter a phase of significant growth driven by innovative drugs [3][23]. Section 2: Deep Layout in Cardiovascular Diseases - "Xinglitai" is recognized as the first domestic ARB (Angiotensin Receptor Blocker) with strong clinical performance, and its sales are recovering following successful medical insurance negotiations [3][38]. - The company has developed additional products like S086 and other combination formulations to strengthen its market position in hypertension treatment [3][21]. Section 3: New Field Exploration - The company is diversifying into new therapeutic areas, including nephrology and oncology, with promising products like Enadustat and long-acting Teriparatide [3][4]. - Plans to spin off its medical device subsidiary for a separate listing are underway, which is expected to enhance operational efficiency [3][4]. Section 4: Financial Forecast and Investment Recommendations - The company is projected to achieve earnings per share of 0.57, 0.62, and 0.71 yuan for 2024, 2025, and 2026, respectively, indicating substantial growth potential [4][6]. - The report highlights that the company’s revenue is expected to recover and grow significantly in the coming years, driven by innovative drug launches and a strong market position [4][6].