KHPG(SZ:002773) Southwest Securities·2024-10-20 14:00Investment Rating - The report does not specify a clear investment rating for the company [1]. Core Views - Kanghong Pharmaceutical is a leader in innovative ophthalmic drugs, with a strong pipeline that lays the foundation for long-term growth [1]. - The potential market for the drug Conbercept is vast, with an estimated patient population exceeding 20 million [1][14]. - The company is expanding its product line into Alzheimer's disease and continues to advance its research pipeline [1][22]. Summary by Sections Company Overview - Kanghong Pharmaceutical, established in 1996, focuses on the research, production, and sales of traditional Chinese medicine, chemical drugs, and biological products [8]. - The company has a significant shareholding structure, with the actual controllers holding 56.6% of the shares [9]. Product Performance - Conbercept generated revenue of 1.94 billion yuan in 2023, reflecting a growth of 41.7%, with a compound annual growth rate (CAGR) of 28% from 2015 to 2023 [1][14]. - The drug has been approved for four major indications, including age-related macular degeneration (AMD) and diabetic macular edema (DME), with a patient population exceeding 20 million [14][16]. Research and Development Pipeline - The company is actively pursuing clinical trials for high-concentration Conbercept, which received approval for clinical trials in November 2023 [1][24]. - The pipeline includes innovative gene therapies for ophthalmic conditions, with KH631 and KH658 receiving IND approvals from NMPA and FDA [1][22][26]. - The company is also developing KH110-R01 (Wujia Yizhi Granules) for mild to moderate Alzheimer's disease, with ongoing clinical trials [22][28]. Financial Forecast - The company is projected to achieve net profits of 1.2 billion yuan, 1.38 billion yuan, and 1.54 billion yuan for the years 2024, 2025, and 2026, respectively [1].