HUADONG MEDICINE(SZ:000963) KAIYUAN SECURITIES·2025-11-12 05:15Investment Rating - The investment rating for Huadong Medicine is maintained as "Buy" [1] Core Insights - The Phase II results of DR10624 for treating severe hypertriglyceridemia (SHTG) showed significant efficacy, with triglyceride levels reduced by up to 74.5% and liver fat eliminated by up to 67% during a 12-week treatment period [4] - The company is expected to achieve net profits of 4.06 billion, 4.72 billion, and 5.54 billion yuan for the years 2025 to 2027, with corresponding EPS of 2.32, 2.69, and 3.16 yuan [4] - The current stock price corresponds to a PE ratio of 18.3, 15.8, and 13.5 for the years 2025, 2026, and 2027 respectively [4] Financial Summary - Revenue projections for Huadong Medicine are 40.62 billion, 41.91 billion, 44.68 billion, 47.95 billion, and 51.83 billion yuan from 2023 to 2027, with year-over-year growth rates of 7.7%, 3.2%, 6.6%, 7.3%, and 8.1% respectively [8] - The gross margin is expected to improve from 32.4% in 2023 to 35.4% in 2027, while the net margin is projected to increase from 7.0% to 10.7% over the same period [8] - The return on equity (ROE) is forecasted to rise from 13.2% in 2023 to 15.7% in 2027 [8] Clinical Development and Market Position - The company is advancing its clinical pipeline, with DR30206 in Phase I/II and HDM2005 expected to present Phase I data at the ASH annual meeting in December 2025 [6] - Huadong Medicine is also exploring the MASH indication for DR10624, with data expected in the first half of 2026, positioning itself in a competitive market with multiple multinational corporations targeting FGF21 [5]