YILING PHARMACEUTICAL(SZ:002603) Ping An Securities·2025-08-29 13:04Investment Rating - The report maintains a "Recommended" rating for the company, indicating an expectation that the stock will outperform the market by 10% to 20% over the next six months [7][9]. Core Insights - The company achieved a revenue of 4.04 billion yuan in the first half of 2025, reflecting a year-on-year decrease of 12.26%, while the net profit attributable to shareholders increased by 26.03% to 669 million yuan [4]. - The company is in a recovery phase, with projected revenues for 2025 and 2026 adjusted to 87.95 billion yuan and 98.65 billion yuan, respectively, down from previous estimates [9]. - The gross profit margin improved to 59.48% in the first half of 2025, up by 6.11 percentage points year-on-year, indicating effective cost control [8]. Financial Performance Summary - The company reported a net profit margin of 16.47% in the first half of 2025, an increase of 5.03 percentage points year-on-year [8]. - The revenue forecast for 2025 is set at 87.95 billion yuan, with a net profit forecast of 12.70 billion yuan, reflecting a significant recovery from previous years [9]. - The company’s earnings per share (EPS) is projected to be 0.76 yuan in 2025, with a price-to-earnings (P/E) ratio of 21.3 times [7][9]. R&D and Product Development - The company continues to advance its innovation in traditional Chinese medicine and biopharmaceuticals, with several new drug applications currently under review [8]. - As of the first half of 2025, four innovative drug candidates have entered clinical stages, showcasing the company's commitment to R&D [6][8].