ZHONGSHENGYAOYE(SZ:002317) Yong Xing Zheng Quan·2025-09-08 11:28Investment Rating - The report assigns a "Buy" rating to the company, indicating a positive outlook based on the successful launch of its innovative drug and the progress of its pipeline [4]. Core Insights - The company reported a revenue of 1.3 billion yuan in the first half of 2025, a decrease of 4.74% year-on-year, while the net profit attributable to shareholders increased by 114.96% to 188 million yuan [1]. - The core business of traditional Chinese medicine remains a significant source of revenue, with sales of traditional Chinese medicine reaching 689 million yuan, down 10.14%, while chemical drug sales increased by 6.10% to 495 million yuan [2]. - The launch of Anglavei tablets, the first PB2-targeted treatment for adult influenza, marks a significant advancement in the company's innovative drug pipeline [3]. Revenue and Profit Forecast - The company is expected to achieve revenues of approximately 2.64 billion yuan, 2.91 billion yuan, and 3.27 billion yuan for the years 2025, 2026, and 2027, respectively, with year-on-year growth rates of 6.9%, 10.1%, and 12.4% [4][6]. - The net profit attributable to shareholders is projected to be around 320 million yuan, 380 million yuan, and 480 million yuan for the same years, with corresponding PE ratios of 56, 48, and 38 [4][6]. Product Pipeline Progress - The company has successfully launched Anglavei tablets and has two other innovative drugs, RAY1225 and ZSP1601, in its pipeline, with RAY1225 currently undergoing Phase III clinical trials [3]. - RAY1225 is a dual receptor agonist for metabolic diseases, showing better efficacy and safety compared to existing treatments, while ZSP1601 is the first drug approved for clinical treatment of NASH in China [3]. Financial Metrics - The report highlights a gross margin of 69.57% for traditional Chinese medicine products, indicating strong profitability in this segment [2]. - The company’s earnings per share (EPS) is projected to improve from -0.36 yuan in 2024 to 0.56 yuan in 2027, reflecting a turnaround in profitability [6][13]. Market Position - The company’s stock closed at 21.37 yuan on August 29, 2025, with a market capitalization of approximately 16.28 billion yuan [7]. - The stock has shown a significant performance compared to the CSI 300 index over the past year, indicating strong market interest [9].