YILING PHARMACEUTICAL(SZ:002603) KAIYUAN SECURITIES·2025-08-28 11:03Investment Rating - The investment rating for the company is "Buy" (maintained) [1][3] Core Views - The company achieved a revenue of 4.04 billion yuan in H1 2025, a year-on-year decrease of 12.26%, while the net profit attributable to shareholders was 669 million yuan, an increase of 26.03% [3] - The gross margin for H1 2025 was 59.48%, up by 6.11 percentage points, and the net profit margin was 16.47%, up by 5.03 percentage points [3] - The report highlights the company's innovative pipeline and cost reduction strategies as key drivers for future growth [3][5] Financial Performance Summary - In H1 2025, the company reported a revenue of 4.04 billion yuan, with a net profit of 669 million yuan, and a non-recurring net profit of 641 million yuan [3] - The second quarter of 2025 saw a revenue of 1.68 billion yuan, a decrease of 19.21%, but a net profit increase of 51.23% to 343 million yuan [3] - The company expects net profits for 2025-2027 to be 1.308 billion, 1.501 billion, and 1.725 billion yuan respectively, with corresponding EPS of 0.78, 0.90, and 1.03 yuan [3][7] Product Revenue Breakdown - Cardiovascular products generated 1.963 billion yuan in revenue, down 15.14%, with a gross margin of 65.54% [4] - Respiratory products had revenue of 921 million yuan, down 28.25%, with a gross margin of 70.90% [4] - Other patented products saw a revenue increase of 53.18% to 246 million yuan, with a gross margin of 64.33% [4] Innovation and R&D Progress - The company is advancing its innovative drug pipeline, with several new drug applications under review, including those for treating postoperative pain and acute myeloid leukemia [5] - The company has received approval for the registration of new drugs such as Qifang Nasal Drops and is progressing with others in various clinical stages [5]