Guobang Pharma (SH:605507) Tianfeng Securities·2024-10-14 09:10Investment Rating - The report gives a "Buy" rating for the company with a target price of 26.47 CNY for 2025 [6]. Core Viewpoints - The company, Guobang Pharmaceutical, is positioned as a leader in the pharmaceutical raw materials and key intermediates sector, with stable and continuous growth in performance [14]. - The company has a strong competitive edge based on its "one system, two platforms" strategy, focusing on the research, production, and operation of veterinary raw materials and key pharmaceutical intermediates [14][18]. - The company is the largest global producer of sodium borohydride, holding a market share of approximately 45.2% in 2022 [2][29]. Summary by Sections 1. Pharmaceutical Raw Materials and Key Intermediates - Guobang Pharmaceutical's main products, including sodium borohydride, sodium borohydride, and florfenicol, rank among the top globally, with a sales network covering China, the USA, and Europe [1][14]. - The company has shown a steady increase in production and sales volume of its leading products, with revenue growing from 3.8 billion CNY in 2019 to 5.72 billion CNY in 2022, reflecting a CAGR of 14.59% [18]. 2. Intermediate Sector - The company has a high market position in the key pharmaceutical intermediates sector, being one of the few domestic companies capable of large-scale production of sodium borohydride and other products [2][24]. - The production of key intermediates requires high standards in technology, safety, and environmental protection, which creates significant barriers to entry for competitors [24]. 3. Raw Material Sector - The demand for macrolide antibiotics is robust, with over 60% of azithromycin and clarithromycin being exported [3]. - The company is expected to maintain stable growth in its macrolide raw materials segment due to new capacity coming online and favorable supply-demand dynamics [3][30]. 4. Veterinary Sector - The company has a comprehensive product lineup in the veterinary raw materials field, with 16 products approved for domestic use, showcasing strong competitive capabilities [4]. - The price of florfenicol has shown signs of recovery, which could provide significant earnings elasticity for the company [4]. 5. Profit Forecast and Valuation - The company is projected to achieve revenues of 58.20 billion CNY, 67.09 billion CNY, and 76.94 billion CNY for 2024, 2025, and 2026, respectively, with year-on-year growth rates of 8.79%, 15.27%, and 14.69% [5]. - The estimated net profit attributable to the parent company is expected to be 8.03 billion CNY, 9.86 billion CNY, and 11.70 billion CNY for the same years [5].