Kanion Pharmaceutical(SH:600557) ZHESHANG SECURITIES·2025-08-28 12:31Investment Rating - The investment rating for the company is "Buy" (maintained) [2][6] Core Views - The company is expected to see a performance turnaround in the second half of 2025, driven by improved gross margins and the successful rollout of new drug developments [6] - The company reported a revenue of 1.642 billion yuan in the first half of 2025, a year-on-year decrease of 27.29%, with a net profit attributable to shareholders of 142 million yuan, down 40.12% year-on-year [6] - The report highlights that the high base from flu demand in the previous year has pressured performance, but a recovery in gross margins is anticipated due to lower prices for traditional Chinese medicine materials [6] Financial Summary - Revenue projections for 2024 to 2027 are as follows: 3,897.67 million yuan in 2024, 3,352.13 million yuan in 2025 (down 19.86%), 3,647.16 million yuan in 2026 (up 8.80%), and 4,017.54 million yuan in 2027 (up 10.16%) [2][7] - Net profit attributable to shareholders is projected to be 391.86 million yuan in 2024, 335.05 million yuan in 2025 (down 15.58%), 378.11 million yuan in 2026 (up 12.85%), and 423.15 million yuan in 2027 (up 11.91%) [2][7] - Earnings per share (EPS) are expected to be 0.69 yuan in 2024, 0.59 yuan in 2025, 0.67 yuan in 2026, and 0.75 yuan in 2027 [2][7] Research and Development Progress - The company has made significant progress in its R&D pipeline, with new drug registrations and clinical trial advancements [6] - Notable developments include the registration of Yu Nu Jian Granules and several clinical approvals for new indications in traditional Chinese medicine and chemical drugs [6] - The company is actively advancing multiple innovative drug candidates through clinical trials, including treatments for Alzheimer's disease and other conditions [6]