Hengrui Pharma(SH:600276)2024-10-27 06:44Investment Rating - The report maintains a "Buy" rating for the company, indicating a strong expectation of performance relative to the market [4][5]. Core Insights - The company reported a revenue of 20.189 billion yuan for the first three quarters of 2024, representing an 18.67% year-on-year increase, and a net profit attributable to shareholders of 4.620 billion yuan, up 32.98% year-on-year [4][5]. - The growth in profit was lower than revenue growth primarily due to a low base in sales expense ratio from the previous year, which was impacted by regulatory compliance measures [4][5]. - The company has made significant progress with multiple innovative products, including the approval of its first innovative drug for autoimmune diseases and several new drug applications under review [5]. - The internationalization strategy is advancing, with several generic products approved in the U.S., including a high-barrier generic drug and a first generic drug for a specific formulation [5]. - The company is expected to enter a rapid growth phase in the coming years, driven by domestic sales of innovative drugs and ongoing international expansion [5][6]. Financial Summary - For 2024, the company forecasts total revenue of 26.137 billion yuan, with a year-on-year growth rate of 14.5%, and a net profit of 6.181 billion yuan, reflecting a 43.7% increase [6]. - The projected earnings per share for 2024 is 0.97 yuan, with a gross margin of 85.0% [6]. - The company maintains a high R&D expense ratio of 23% in Q3 2024, indicating a strong commitment to innovation [4][5].