Wolwo Pharma(SZ:300357) Haitong Securities International·2025-11-13 08:02Investment Rating - The report maintains an "Outperform" rating for the company, with a target price of 38.26 RMB and a 2026 PE of 41X [4][9]. Core Insights - The company's core product, dust mite drops, is steadily growing, while the new product, artemisia annua drops, is rapidly gaining market share. The prick test solution product line is also expanding, and there are multiple advancements in the R&D pipeline [1][4]. - In the first three quarters of 2025, the company achieved a revenue of 0.85 billion RMB, representing a growth of 16.86%, and a net profit attributable to shareholders of 0.35 billion RMB, which is an increase of 26.67% [4][9]. - The company has effectively controlled costs, leading to profit growth that outpaces revenue growth, primarily due to a decrease in expense ratios and refined sales management [4][9]. Financial Summary - The company’s projected financials show a revenue increase from 848 million RMB in 2023 to 1.525 billion RMB in 2027, with a CAGR of approximately 18.9% [3][5]. - Net profit attributable to shareholders is expected to grow from 310 million RMB in 2023 to 595 million RMB in 2027, reflecting a CAGR of about 21.7% [3][5]. - The earnings per share (EPS) forecast is adjusted to 0.77 RMB for 2025, 0.93 RMB for 2026, and 1.14 RMB for 2027 [4][9]. Product Performance - By product, dust mite revenue reached 0.79 billion RMB (+13.38%), artemisia annua revenue was 44.76 million RMB (+117.58%), and prick test solution revenue was 11.05 million RMB (+94.10%) in the first three quarters of 2025 [4][9]. - In Q3 2025 alone, the company reported a revenue of 0.37 billion RMB (+22.64%) and a net profit of 0.17 billion RMB (+36.44%) [4][9]. R&D Pipeline - The company is advancing its allergen product development, with several products in various stages of clinical trials, including the artemisia annua pollen sublingual drops and dermatitis diagnostic patches [4][9]. - Current R&D products include the house dust mite membrane agent in Phase I, and two dermatitis diagnostic patches in Phase I and II clinical trials [4][9].