CSPC Innovation(SZ:300765) Huafu Securities·2024-10-17 09:38Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 20% relative to the market benchmark within the next six months [16]. Core Views - The company is acquiring 100% of Shiyao Baike for a total transaction price of 7.6 billion CNY in cash and 68.4 billion CNY in stock, with the aim of integrating high-quality innovative drug assets [2][3]. - The acquisition follows a previous integration of Giant Stone Biology, further enhancing the company's portfolio in the pharmaceutical sector [2]. - The company plans to raise up to 1.78 billion CNY through a private placement to fund the acquisition and support new drug development projects [2]. Financial Summary - For 2023, the company reported a revenue of 2,502 million CNY and a net profit of 755 million CNY, with an EPS of 0.54 CNY [7]. - Revenue projections for 2024, 2025, and 2026 are 2,479 million CNY, 2,823 million CNY, and 3,069 million CNY respectively, with growth rates of -1%, 14%, and 9% [4][13]. - The net profit for the same years is projected to be 697 million CNY, 822 million CNY, and 874 million CNY, reflecting growth rates of -8%, 18%, and 6% [4][13]. Asset Overview - Shiyao Baike's financials include cash and financial assets totaling 2.16 billion CNY, with 2023 revenue of 2.32 billion CNY and a net profit of 780 million CNY [2]. - The company has a strong pipeline with key products and ongoing clinical trials for drugs targeting various conditions, including obesity and Alzheimer's disease [2]. Valuation Metrics - The company’s P/E ratios for 2024, 2025, and 2026 are projected to be 58, 49.1, and 46.2 respectively, indicating a gradual decrease in valuation multiples over the forecast period [4][13].