CCHT(000661)2025-05-15 10:45Investment Rating - The investment rating for the company is "Outperform" with a target price of RMB 107.53, while the current price is RMB 89.30 [1]. Core Insights - The report highlights that the company's increased investment in R&D and sales is impacting short-term profitability, with a focus on expanding indications for growth hormone and developing new pipelines [1][8]. - The company is expected to achieve revenue of RMB 13.47 billion in 2024, a decrease of 7.55%, and a net profit of RMB 2.58 billion, down 43.01% [8]. - The report adjusts the EPS forecast for 2025 and 2026 to RMB 6.72 and RMB 7.08 respectively, and introduces a new EPS forecast for 2027 at RMB 7.49 [8]. Financial Summary - The company is projected to have a revenue of RMB 14.19 billion in 2025, with a net profit of RMB 2.74 billion, reflecting a 6.1% increase from 2024 [5]. - The net profit margin is expected to decline due to increased R&D and sales expenses, as well as management costs associated with new business unit structures [8]. - The company's net asset return rate is projected to be 11.2% in 2024, down from 20.5% in 2023 [5]. Revenue and Profit Trends - The core subsidiary, Jinsai, is expected to generate revenue of RMB 10.67 billion in 2024, a decrease of 3.73%, with a net profit of RMB 2.68 billion, down 40.67% [8]. - The report notes a significant decline in sales for the shingles vaccine, with revenue expected to be RMB 1.23 billion in 2024, a drop of 32.64% [8]. R&D and Product Development - Jinsai is accelerating new product R&D and enhancing talent acquisition, which is increasing personnel and R&D costs, thereby reducing profitability [8]. - The company is expanding the applications of growth hormone in assisted reproduction and adult growth hormone deficiency, while also developing a diverse innovation pipeline [8].