JINGXIN(SZ:002020) Orient Securities·2025-11-21 05:58Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 23.54 CNY based on a 22x P/E ratio for 2026 [5][12]. Core Insights - The company is in a rapid growth phase for its core business and key products over the next 1-2 years, with adjustments made to revenue and expense forecasts [5]. - The first innovative drug, Dazisin, has been approved and is expected to perform well commercially, with significant market potential in the insomnia treatment sector [12][42]. - The company has a strong pipeline focusing on central nervous system and lipid-lowering therapies, with promising products in various stages of development [12][22]. Financial Summary - Revenue projections for the company are as follows: - 2023: 3,999 million CNY - 2024: 4,159 million CNY (growth of 4.0%) - 2025: 4,279 million CNY (growth of 2.9%) - 2026: 4,714 million CNY (growth of 10.2%) - 2027: 5,363 million CNY (growth of 13.8%) [7]. - Net profit attributable to the parent company is projected to grow from 619 million CNY in 2023 to 1,079 million CNY in 2027, reflecting a compound annual growth rate of approximately 17.5% [7]. Business Focus - The company has shifted its focus towards innovation after facing challenges from centralized procurement, with a robust pipeline of generic and innovative drugs [12][15]. - The main therapeutic areas include central nervous system disorders, cardiovascular diseases, and digestive system conditions, with a strong emphasis on innovative drug development [15][19]. Product Pipeline - The company has a diverse pipeline with key products such as: - Dazisin (approved for insomnia) - JX11502 (in Phase II for schizophrenia) - JX2201 (in Phase I for high Lp(a) levels) [23][32]. - The company is also pursuing first-generic opportunities for high-value products, such as Calira, which has significant market potential [27][29]. Market Position - The company has established a solid market presence in the CNS and lipid-lowering sectors, with leading market shares in several key products [24][26]. - The innovative drug Dazisin is positioned to capture a significant share of the insomnia treatment market, which has over 200 million patients in China [42][45].