Investment Rating - The investment rating for the company is "Outperform the Market" [5][3][27] Core Views - The company's overall performance in 2024 is under pressure due to the impact of the bromhexine hydrochloride incident, with revenue decreasing by 10.7% to HKD 57.73 billion and net profit declining by 19.5% to HKD 10.61 billion [1][7][3] - Despite short-term challenges, the long-term outlook for the formulation business is promising, with significant growth expected [3][26] - The company has maintained good cost control, with a sales expense ratio of 19.8% and a management expense ratio of 5.2% [7][1] Summary by Sections Revenue and Profitability - In 2024, the company achieved revenue of HKD 57.73 billion, down 10.7%, and a net profit of HKD 10.61 billion, down 19.5% [1][7] - The gross margin for 2024 was 50.4%, a decrease of 5.6 percentage points, while the net margin was 18.4%, down 2.0 percentage points [1][7] Business Segments - The large-volume infusion business generated revenue of HKD 37.35 billion, a decrease of 7.6%, with sales volume increasing by 6.7% to 2.036 billion bags [1][17] - The oral formulation business grew by 4.9% to HKD 5.02 billion, driven by significant sales increases in key products [2][13] - The raw material drug business saw a decline of 11.7% to HKD 7.85 billion due to international market pressures [2][13] Research and Development - The company invested HKD 2.66 billion in R&D in 2024, obtaining 112 production approvals and 7 clinical approvals [2][26] - The development of complex formulations and innovative drugs is progressing, with a focus on various advanced drug delivery technologies [2][26] Financial Forecasts - The company expects net profits to be HKD 10.37 billion, HKD 10.79 billion, and HKD 11.78 billion for 2025, 2026, and 2027 respectively, reflecting a slight decline in 2025 followed by modest growth [3][26] - Revenue projections for the next three years indicate a continued recovery, with expected growth in the formulation segment [3][26]
石四药集团（02005）：2024年报点评：短期收入、利润承压，长期制剂业务放量可期