Gan & Lee(603087) 太平洋·2025-01-24 11:31Investment Rating - The report initiates coverage with a "Buy" rating for Gannee Pharmaceutical [10] Core Views - Gannee Pharmaceutical is a leading player in the insulin market in China, with a comprehensive product pipeline covering long-acting, rapid-acting, and premixed insulin [3][18] - The domestic business is entering a stable growth phase, driven by the implementation of insulin procurement policies that enhance product pricing and volume [4][26] - The company is expanding into overseas markets, particularly in emerging regions, and has significant potential in the U.S. market for biosimilar insulin products [5][8] Summary by Sections Company Overview - Gannee Pharmaceutical has been focused on diabetes treatment for over 20 years and is the first in China to master recombinant insulin manufacturing [18] - The company has a stable shareholding structure, with its founder being a well-known expert in the insulin industry [20][21] Domestic Market - The insulin procurement policy has led to a significant increase in the volume and price of Gannee's products, with a 33% increase in agreement volume compared to the first round of procurement [4][26] - The company achieved a revenue of 26.08 billion yuan in 2023, a 52.31% increase year-on-year, and turned a profit after a previous loss [25][26] Overseas Market - Gannee is actively expanding into emerging markets, with its insulin products approved in 20 countries and commercial sales in 18 [5][8] - The U.S. insulin market is projected to be worth approximately $28.4 billion in 2023, with Gannee's products expected to capture a significant share due to their competitive pricing [5][8] R&D Pipeline - The company is not only focused on insulin but is also advancing into the GLP-1 receptor agonist market, with promising results from clinical trials [9][18] Financial Forecast and Valuation - Revenue projections for 2024-2026 are 32.25 billion, 46.21 billion, and 54.40 billion yuan, with corresponding net profits of 6.26 billion, 11.19 billion, and 14.67 billion yuan [10][12]