Konruns(SH:603590) Orient Securities·2025-05-26 08:15Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 38.64 CNY based on a 46x PE for 2025 [2][5]. Core Insights - The company experienced a significant decline in revenue and net profit in 2024, primarily due to goodwill impairment related to the "Mikazuki" asset group. However, the first quarter of 2025 shows signs of recovery with a revenue increase of 6.4% year-on-year [10]. - The company's existing business faced challenges, but growth opportunities are emerging as marketing transformations progress and the impact of centralized procurement diminishes [10]. - The clinical pipeline is advancing well, with promising results from ongoing trials and regulatory submissions for key products, indicating strong long-term growth potential [10]. Financial Performance Summary - Revenue for 2023 was 920 million CNY, with a projected decline to 825 million CNY in 2024, followed by a recovery to 969 million CNY in 2025, reflecting a 17.4% growth [4]. - The net profit attributable to the parent company dropped to 42 million CNY in 2024 from 150 million CNY in 2023, but is expected to rebound to 133 million CNY in 2025, marking a 215.6% increase [4]. - The company's gross margin remains stable at around 89%, while the net margin is projected to improve from 5.1% in 2024 to 13.8% in 2025 [4]. Clinical Pipeline and Growth Drivers - The clinical candidate KC1036 for esophageal squamous cell carcinoma is in Phase III trials, showing promising efficacy with an ORR of 26.1% and DCR of 69.6% [10]. - The company is in communication with the CDE regarding the NDA for its product Jin Cao Pian, which has been accepted for review [10]. - KC1086, a selective KAT6 inhibitor, has received IND approval, targeting advanced solid tumors [10].