CCHT(000661) 华泰证券·2025-04-22 05:16Investment Rating - The investment rating for the company is maintained as "Buy" with a target price of 106.80 RMB [7][8]. Core Views - The company is in a period of innovation and transformation, expecting to see significant growth in the long term despite short-term revenue and profit declines [1][2]. - The revenue for 2024 is projected to be 13.466 billion RMB, a decrease of 7.6% year-on-year, with a net profit of 2.583 billion RMB, down 43.0% year-on-year [1]. - The company is expected to face challenges in 2025, with a projected net profit decline due to increased sales and management expenses during the transition period [1][5]. Summary by Sections Financial Performance - The company reported a revenue of 29.97 million RMB and a net profit of 4.73 million RMB in Q1 2025, reflecting a year-on-year decline of 5.7% and 45.0% respectively [1]. - For 2025, the expected earnings per share (EPS) is 5.34 RMB, with a projected net profit of 2.180 billion RMB, a decrease of 15.61% year-on-year [5][12]. Revenue Drivers - The growth in revenue is anticipated from the sales of long-acting growth hormones and the gradual release of non-growth hormone products [1][2]. - The overseas market is expected to show significant growth, with a projected increase of 454% year-on-year in 2024 [2]. Cost Structure - The company is experiencing rising sales, management, and R&D expenses due to its innovation transformation, which is expected to continue impacting profitability in the near term [1][12]. - The projected sales expenses for 2025 are estimated at 5.016 billion RMB, reflecting a 13.0% increase year-on-year [13]. Market Position - The company is focusing on expanding its product pipeline, particularly in children's nutrition and other therapeutic areas, which are expected to drive long-term growth [2][3]. - The company is also advancing its vaccine pipeline, with several products in various stages of development [3].