Zhejiang Tianyu Pharmaceutical (SZ:300702) Minsheng Securities·2025-04-28 06:30Investment Rating - The report maintains a "Recommended" rating for the company [6]. Core Views - The company achieved a revenue of 2.63 billion yuan in 2024, a year-on-year increase of 4.1%, and a net profit attributable to shareholders of 60 million yuan, up 104.5% year-on-year [1]. - In Q1 2025, the company reported a revenue of 760 million yuan, a 10.1% year-on-year growth, and a net profit attributable to shareholders of 90 million yuan, reflecting a 112.7% increase year-on-year [1]. - The report highlights a recovery in performance driven by stabilized prices in the raw material drug sector and growth in the formulation business [2][3]. Summary by Sections Revenue and Profitability - In 2024, the company's revenue from raw material drugs and intermediates was 1.99 billion yuan, a slight decline of 0.5% year-on-year, with a gross margin of 29.3%, down 5.1 percentage points [2]. - The CDMO business generated 370 million yuan in revenue, down 9.8% year-on-year, with a gross margin of 49.5%, a decrease of 7.2 percentage points [2]. - The formulation business saw significant growth, achieving revenue of 250 million yuan, up 142.6% year-on-year, with a gross margin of 55.5%, down 7.3 percentage points [2]. Business Segments - The report indicates that the revenue from the antihypertensive drug category (sartan) was 1.44 billion yuan in 2024, a decline of 11.7%, while non-sartan revenue reached 560 million yuan, a growth of 47.6% [3]. - The CDMO segment is expected to recover as new customized raw material drug projects are set to launch, particularly in collaboration with major pharmaceutical companies [3]. Future Projections - The company is projected to achieve net profits of 226 million yuan, 304 million yuan, and 386 million yuan for 2025, 2026, and 2027 respectively, with year-on-year growth rates of 304.8%, 34.3%, and 27.0% [4][5]. - The report anticipates a revenue growth rate of 13.1% in 2025, 13.7% in 2026, and 13.8% in 2027 [5]. Valuation Metrics - The projected price-to-earnings (PE) ratios for the company are 33, 25, and 19 for the years 2025, 2026, and 2027 respectively [5].