CCHT(000661) Haitong Securities International·2025-05-15 08:35Investment Rating - The report maintains an "Outperform" rating for the company [1][8] Core Views - The company is increasing its investment in R&D and sales, which is expected to impact short-term profitability. The focus is on expanding indications for growth hormone and developing new pipelines [1][8] - The revenue forecast for 2024 is adjusted to RMB 13.47 billion, reflecting a decrease of 7.55%, with net profit expected to be RMB 2.58 billion, down 43.01% [8] - The target price is adjusted to RMB 107.53, based on a 2025 PE of 16X, reflecting a valuation discount compared to peers due to intensified competition in the growth hormone market [1][8] Financial Summary - The company reported a revenue of RMB 14.57 billion in 2023, with a projected decline to RMB 13.47 billion in 2024. The net profit for 2023 was RMB 4.53 billion, expected to drop to RMB 2.58 billion in 2024 [3][5] - The EPS forecast for 2025 is adjusted to RMB 6.72, with a new forecast for 2027 at RMB 7.49 [1][8] - The company's profit margin is declining due to increased R&D and sales expenses, as well as management costs associated with restructuring [8] Segment Performance - The core subsidiary, Jinsai, is expected to generate revenue of RMB 10.67 billion in 2024, down 3.73%, with a net profit of RMB 2.68 billion, a decrease of 40.67% [8] - The sales of the shingles vaccine from the Bick segment are projected to decline, with revenue expected to be RMB 1.23 billion in 2024, down 32.64% [8] - Ongoing R&D projects are progressing, with milestones achieved in various vaccine developments [8]