HitGen(SH:688222) ZHONGTAI SECURITIES·2024-10-30 00:42Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative performance increase of over 15% compared to the benchmark index within the next 6 to 12 months [15]. Core Insights - The company is showing a gradual recovery in Q3, with a significant increase in revenue and profit, driven by the growth of its DEL platform and ongoing improvements in its drug discovery capabilities [1][2]. - The company achieved a revenue of 1.04 billion yuan in Q3 2024, representing a year-on-year growth of 14.96%, and a net profit of 199.2 million yuan, up 59.82% year-on-year [1]. - The report highlights the company's strong pipeline of new drug projects and the successful implementation of new technology platforms, which are expected to contribute to long-term growth [1][2]. Financial Performance Summary - Revenue Forecasts: - 2022A: 329.65 million yuan - 2023A: 371.32 million yuan (growth rate: 12.64%) - 2024E: 434.94 million yuan (growth rate: 17.13%) - 2025E: 518.31 million yuan (growth rate: 19.17%) - 2026E: 625.55 million yuan (growth rate: 20.69%) [1] - Net Profit Forecasts: - 2022A: 25.27 million yuan - 2023A: 40.72 million yuan (growth rate: 61.16%) - 2024E: 50.23 million yuan (growth rate: 23.36%) - 2025E: 63.12 million yuan (growth rate: 25.67%) - 2026E: 80.36 million yuan (growth rate: 27.31%) [1] - Earnings Per Share (EPS): - 2022A: 0.06 yuan - 2023A: 0.10 yuan - 2024E: 0.13 yuan - 2025E: 0.16 yuan - 2026E: 0.20 yuan [1] - Valuation Ratios: - P/E ratio is projected to decrease from 225.03 in 2022A to 70.75 in 2026E, indicating improving valuation as earnings grow [1]. - P/B ratio is expected to decline from 4.37 in 2022A to 3.68 in 2026E [1]. Market Comparison - The company’s market capitalization is approximately 5.69 billion yuan, with a share price of 14.19 yuan as of October 28, 2024 [1]. - The report notes that the overall market trend is showing a recovery, with the company’s performance improving relative to its peers in the industry [1]. Business Development - The company is expanding its capabilities in drug discovery through the establishment of new technology platforms, including DEL and AI/ML, which are expected to enhance its competitive edge and drive future growth [1][2]. - The report emphasizes the importance of the company’s diverse drug pipeline and its ability to adapt to market demands, which positions it well for sustained growth [1].