huahaipharm(600521) 华创证券·2024-11-01 03:13Investment Rating - The report maintains a "Strong Buy" rating for Huahai Pharmaceutical (600521) with a target price of 27.4 CNY [1][2]. Core Views - The company's performance in the first three quarters of 2024 met expectations, with revenue reaching 7.248 billion CNY (+16.76%) and net profit attributable to shareholders at 1.031 billion CNY (+42.92%) [1]. - The raw material drug segment is recovering with existing products and new product launches, leading to a stable growth trajectory [2]. - Domestic formulation business is a strong growth driver, with revenue of 2.81 billion CNY (+31%) in the first three quarters of 2024 [2]. - The overseas formulation segment is stable, with revenue of 1.03 billion CNY in the same period, showing improved profitability [2]. - The forecast for net profit attributable to shareholders for 2024-2026 is 1.301 billion CNY, 1.607 billion CNY, and 1.993 billion CNY, representing year-on-year growth of 56.7%, 23.5%, and 24.0% respectively [2]. Financial Summary - Total revenue for 2023 is projected at 8.309 billion CNY, with expected growth rates of 20.2% in 2024, 20.4% in 2025, and 20.2% in 2026 [3]. - Net profit for 2023 is estimated at 830 million CNY, with significant growth anticipated in the following years [3]. - Earnings per share (EPS) is expected to increase from 0.57 CNY in 2023 to 1.36 CNY by 2026 [3]. - The company’s total assets are projected to grow from 18.6 billion CNY in 2023 to 28.825 billion CNY by 2026 [6].