Hengrui Pharma(SH:600276) AVIC Securities·2024-10-31 06:43Investment Rating - The investment rating for the company is "Buy" with a target price of 48.00 CNY, indicating an expected return exceeding 10% relative to the CSI 300 index over the next six months [2][8]. Core Insights - The company's performance in the first three quarters of 2024 met expectations, with a revenue of 20.189 billion CNY, representing an 18.67% year-on-year increase, and a net profit attributable to shareholders of 4.620 billion CNY, up 32.98% year-on-year [2]. - The company is increasing its focus on innovation, with R&D expenses reaching 4.549 billion CNY in the first three quarters of 2024, a 22.10% increase year-on-year [2]. - The company has made significant progress in its innovative drug pipeline, with 19 projects in Phase III, 32 in Phase II, and 36 in Phase I as of July 31, 2024 [2]. Summary by Sections Financial Performance - For the first three quarters of 2024, the company achieved a revenue of 20.189 billion CNY, a year-on-year growth of 18.67%, and a net profit of 4.620 billion CNY, reflecting a 32.98% increase [2]. - In Q3 2024 alone, the company reported a revenue of 6.589 billion CNY, a 12.72% year-on-year increase, and a net profit of 1.188 billion CNY, which is a 1.91% increase year-on-year [2]. R&D and Innovation - The company has maintained a high level of R&D investment, with R&D expenses of 4.549 billion CNY in the first three quarters of 2024, marking a 22.10% increase year-on-year [2]. - The company has successfully launched its first self-developed innovative drug, and multiple innovative drug applications have been accepted for review [2]. Future Outlook - The company is expected to have EPS of 0.84 CNY, 1.02 CNY, and 1.25 CNY for the years 2024, 2025, and 2026 respectively, with corresponding dynamic P/E ratios of 56.99, 46.97, and 38.48 [2]. - The report expresses confidence in the company's ability to maintain its leading position in innovation and enhance its market competitiveness [2].