HUADONG MEDICINE(000963) Guotai Junan Securities·2024-10-27 12:17Investment Rating - The investment rating for the company is "Buy" [3] Core Views - The report highlights stable revenue growth and the continuous advancement of the innovation pipeline, indicating a positive long-term growth outlook for the company [2] Financial Performance Summary - For the first three quarters of 2024, the company reported revenue of 31.478 billion yuan, an increase of 3.56%, and a net profit attributable to shareholders of 2.562 billion yuan, up 17.05%. The third quarter alone saw revenue of 10.513 billion yuan, growing by 5.03%, and a net profit of 866 million yuan, increasing by 14.71% [8] - The company maintains its EPS forecasts for 2024-2026 at 1.93, 2.25, and 2.55 yuan respectively, and has raised the target price to 42.75 yuan from the previous 39.29 yuan [8] Business Segment Performance - The pharmaceutical manufacturing segment generated revenue of 9.941 billion yuan, up 10.53%, with a net profit of 2.140 billion yuan, increasing by 14.49%. The third quarter saw a revenue growth of 10.32% and a net profit growth of 20.44% [8] - The industrial microbiology segment reported revenue of 443 million yuan, a significant increase of 30.17%, driven by expanding overseas markets and an increasing number of cooperative clients [8] - The medical aesthetics segment achieved a total revenue of 1.909 billion yuan, with the core product "少女针" generating 909 million yuan, reflecting a 10.31% increase [8] Innovation Pipeline - As of Q3 2024, the company has over 70 innovative products in its pipeline, with several expected to receive approval between 2024 and 2025, including ADC drugs and diabetes treatment options [8] Market Data - The current stock price is 34.22 yuan, with a target price of 42.75 yuan, indicating a potential upside [3] - The company has a total market capitalization of 60.031 billion yuan and a net asset value per share of 12.56 yuan [4][5]