YIFAN PHARMACEUTICAL(SZ:002019) Tianfeng Securities·2024-11-03 06:09Investment Rating - The investment rating for the company is "Buy" with a 6-month target price maintained at 12.56 CNY [2][4]. Core Views - The company achieved a revenue of 3.858 billion CNY in the first three quarters of 2024, representing a year-on-year growth of 31.7%. The net profit attributable to shareholders reached 366 million CNY, up 150% year-on-year [2]. - The company’s product, Yilishu (F-627), has completed its first overseas shipment, marking a significant step in its international commercialization [3]. - The company has seen strong growth in its exclusive products, with several innovative drugs contributing significantly to its performance [4]. Financial Performance Summary - For the first three quarters of 2024, the company reported a revenue of 3.858 billion CNY, a 31.7% increase year-on-year, and a net profit of 366 million CNY, which is a 150% increase year-on-year [2]. - In Q3 2024, the company generated a revenue of 1.226 billion CNY, reflecting a 24.3% year-on-year growth, with a net profit of 113 million CNY, up 196% year-on-year [2]. - The company’s revenue forecast for 2024-2026 has been adjusted downwards to 5.201 billion CNY, 6.403 billion CNY, and 7.107 billion CNY respectively [4]. Product Development and Market Expansion - Yilishu (F-627) is the first third-generation white blood cell booster approved in China and has successfully entered the national medical insurance directory, with significant sales growth expected in 2024 [3]. - The company’s partner, Tianliyuanhe, has released early efficacy data for its investigational product A-319 in treating systemic lupus erythematosus (SLE), showing rapid effects [12]. - A-319 has demonstrated significant improvements in SLEDAI-2K scores among patients, indicating its potential in the market [12]. Market Position and Competitive Landscape - The company has seven products with sales exceeding 100 million CNY, with innovative drugs like Yilishu being the main contributors to revenue growth [4]. - The competitive landscape for A-319 is highlighted by recent global interest in CD3&CD19 T cell engagers, indicating a strong market potential for the company’s offerings [11][19]. Financial Projections - The company’s projected revenues for 2024, 2025, and 2026 are 5.201 billion CNY, 6.403 billion CNY, and 7.107 billion CNY respectively, with corresponding net profits of 500 million CNY, 720 million CNY, and 910 million CNY [8][21]. - The company’s earnings per share (EPS) is expected to improve from -0.45 CNY in 2023 to 0.41 CNY in 2024, reflecting a positive trend in profitability [21].