Salubris(002294) Orient Securities·2024-10-13 10:03Investment Rating - The report assigns an "Accumulate" rating to the company with a target price of 37.62 CNY based on a projected P/E ratio of 66 times for 2024 [3][6]. Core Insights - The company is a leading player in the cardiovascular field in China, focusing on innovative drug development and expanding its product pipeline, particularly in chronic disease management [2][11]. - The impact of centralized procurement on the company's performance has largely dissipated, allowing for a return to high growth driven by innovative drugs [2][20]. - The company has successfully renewed its medical insurance contracts with minimal price reductions, indicating a stable revenue outlook [2][23]. Summary by Sections Section 1: Expansion and Innovation - The company has been actively transforming and increasing R&D investments, leading to a rich pipeline of innovative products that have recently received approvals [2][14]. - The impact of centralized procurement on the company's major products has been significantly reduced, with a shift in revenue focus towards innovative drugs expected to drive growth [2][20]. Section 2: Cardiovascular Product Strategy - The flagship product, Alisartan (信立坦), is the first domestic ARB with high clinical recognition, and its sales have shown strong recovery post-medical insurance negotiations [2][29]. - The company is developing new combination formulations and has promising candidates like S086 and JK07, which are expected to enhance its market position in hypertension and heart failure treatments [2][2][29]. Section 3: Diversification into New Fields - The company is expanding into nephrology, oncology, and other therapeutic areas, aiming to create a second growth curve [2][3]. - The recent approval of innovative drugs like Enadustat and the upcoming launch of long-acting formulations indicate a strategic move to address unmet medical needs [2][18]. Section 4: Financial Projections - The company is projected to achieve earnings per share of 0.57 CNY, 0.62 CNY, and 0.71 CNY for 2024, 2025, and 2026 respectively, reflecting a strong growth trajectory [3][5]. - Revenue is expected to grow significantly, with forecasts of 4,011 million CNY in 2024, 4,517 million CNY in 2025, and 5,421 million CNY in 2026 [5].