ZHONGSHENGYAOYE(002317) 华福证券·2024-11-05 05:00Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected relative price increase of over 20% compared to the market benchmark index within the next six months [11]. Core Views - The company is experiencing short-term pressure on performance, with a reported revenue of 1.91 billion yuan for the first three quarters of 2024, a year-on-year decline of 7.9%, and a net profit attributable to shareholders of 150 million yuan, down 46.8% year-on-year [1][3]. - The company is focusing on innovation in drug development, with significant progress in its pipeline, including the launch of a new drug for COVID-19 and another drug for influenza currently under review [2][3]. Financial Performance Summary - For the first three quarters of 2024, the gross margin was 56.1%, a decrease of 4.3 percentage points year-on-year, while the sales expense ratio increased to 33.9% [2]. - The company’s net profit forecast for 2024-2026 has been revised downwards, with expected net profits of 220 million, 350 million, and 410 million yuan respectively, corresponding to P/E ratios of 50, 32, and 27 [3][6]. - The company reported a gross margin of 54% in Q3 2024, down 3.1 percentage points year-on-year, with an increase in the sales expense ratio to 37.4% [2]. Innovation Pipeline - The company has a robust innovation pipeline, with key products such as RAY1225, a dual-target innovative drug for diabetes and weight loss currently in Phase II clinical trials, and ZSP1601, an innovative drug for non-alcoholic fatty liver disease, also in Phase IIb trials [2].