Qianhong Bio-pharma(SZ:002550) Huafu Securities·2024-10-18 05:30Investment Rating - The report maintains a "Buy" rating for Qianhong Pharmaceutical, indicating an expected stock price increase of over 20% relative to the market benchmark within the next six months [11]. Core Insights - Qianhong Pharmaceutical's revenue for Q1-Q3 2024 was 1.21 billion yuan, a year-on-year decrease of 17.6%, while the net profit attributable to shareholders increased by 56.5% to 310 million yuan [1][2]. - The company has announced the acquisition of Changzhou Fangyuan for 390 million yuan, which is expected to enhance its product line, particularly with the addition of the core product, Sulbactam Ertapenem, a new drug with good market positioning [2]. - The gross profit margin has shown continuous improvement, reaching 57.2% in Q3 2024, up 11.4 percentage points year-on-year [1][2]. Financial Performance - For Q3 2024, Qianhong achieved a revenue of 350 million yuan, a 14% decline year-on-year, but the net profit attributable to shareholders rose by 60.9% to 130 million yuan [1]. - The company’s gross profit margin for the last four quarters was 44.7%, 53.1%, 52.2%, and 57.2%, indicating a significant upward trend [1]. - The projected net profits for 2024-2026 are 390 million, 460 million, and 460 million yuan respectively, with corresponding P/E ratios of 20, 17, and 17 [2][3]. Acquisition Details - Qianhong plans to acquire all equity of Fangyuan Pharmaceutical through a bankruptcy restructuring process, with an initial deposit of 20 million yuan and the remaining 370 million yuan to be paid upon fulfillment of all conditions [2]. - The acquisition is expected to leverage regional advantages as both companies are located in close proximity in Changzhou [2]. Innovation Pipeline - Qianhong has two innovative drugs currently in Phase II clinical trials, with one targeting acute myeloid leukemia and another for ischemic stroke, both showing promising safety and efficacy results [2].