JENKEM(SH:688356) Bank of China Securities·2025-05-06 01:21Investment Rating - The investment rating for the company is "Buy" with a market price of RMB 61.00 and a sector rating of "Outperform" [1][3]. Core Views - The company is experiencing short-term performance pressure, with a significant decline in revenue and net profit in 2024. However, the progress of its innovative drug, Pegylated Irinotecan, which has entered Phase III clinical trials, is promising. Additionally, the recent launch of its medical beauty products is expected to contribute positively to future performance, leading to a maintained "Buy" rating [3][5][7]. Summary by Relevant Sections Financial Performance - In 2024, the company reported a revenue of RMB 227 million, a year-on-year decline of 22.26%, and a net profit of RMB 30 million, down 74.22%. For Q1 2025, revenue was RMB 69 million, up 6.66%, while net profit was RMB 12 million, down 17.79% [3][5][7]. Revenue and Profit Forecast - The revised profit forecast for 2025-2027 estimates net profits of RMB 50 million, RMB 74 million, and RMB 98 million respectively, with corresponding EPS of RMB 0.83, RMB 1.22, and RMB 1.62. The previous forecasts were significantly higher [5][6][7]. Clinical Development - The innovative drug Pegylated Irinotecan is progressing well, with successful patient enrollment in Phase III trials for small cell lung cancer and ongoing Phase II trials for other indications. The company has increased its R&D investment to RMB 79.94 million in 2024, accounting for 35.21% of sales revenue [7][8]. New Product Launch - The company’s medical beauty product, a cross-linked sodium hyaluronate gel, has been approved for market release, which is expected to enhance product diversity and meet market demand, potentially boosting future sales [7][8].