NKF(603707) 华泰证券·2025-01-26 02:00Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of RMB 20.34 [6][7]. Core Insights - The company is expected to turn a profit in 2024, projecting a net profit attributable to shareholders of RMB 8.0-10.5 billion, with a non-recurring net profit of RMB 7.5-10.0 billion. The reversal of inventory impairment provisions is expected to increase net profit by RMB 1.36-2.04 billion [1]. - The company's formulation business remains the main growth driver, with strong performance in the U.S. market, where approximately 90 products have been approved, and 7 new products are expected to be approved in 2024. The domestic market is also stabilizing with 8 new product approvals expected in 2024 [2]. - The biosimilar drug segment is anticipated to become a significant growth engine, with the launch of adalimumab biosimilar and other products like liraglutide and paclitaxel expected to be approved in 1H25 [3]. Summary by Sections Financial Performance - The company forecasts net profits of RMB 9.92 billion, RMB 12.31 billion, and RMB 16.14 billion for 2024-2026, with a 16.8% upward adjustment for 2024 due to inventory impairment reversal. The EPS for 2024-2026 is projected at RMB 0.61, RMB 0.76, and RMB 1.00 respectively [4][10]. Valuation - The company is assigned a PE ratio of 26.70x for 2025, reflecting a 20% premium over comparable companies, leading to a reasonable valuation of RMB 328.60 billion [4][11]. Market Data - As of January 24, the closing price was RMB 13.48, with a market capitalization of RMB 21.779 billion. The 52-week price range was RMB 10.70-15.61 [7][10].