Wolwo Pharma(SZ:300357) KAIYUAN SECURITIES·2025-11-27 08:45Investment Rating - The report gives a "Buy" rating for the company, marking its first coverage [1]. Core Insights - The company is a leader in the desensitization treatment field, with significant advantages in core products and a diversified layout. Its dust mite drops maintain the highest market share, while the mugwort pollen sublingual drops fill a gap in northern pollen allergy treatment, expected to become a new growth point [5][6]. - The allergic market is expanding, with desensitization therapy showing significant advantages over symptomatic treatments. The domestic anti-allergy drug market is projected to reach 43.67 billion yuan by 2029, driven by rising allergy disease incidence [6][47]. - The company's core products are performing strongly, with the dust mite drops showing a five-year CAGR of 8.86% and revenue of 794 million yuan in the first three quarters of 2025, a 13.38% increase year-on-year. The mugwort pollen drops have a CAGR of 64.71% since their launch in 2021, with a 117.58% increase in revenue in the first three quarters of 2025 [7][8]. Summary by Sections Company Overview - The company, established in 2002, focuses on the research, production, and sales of allergen products, specializing in desensitization drugs and diagnostic reagents [18]. Market Potential - The incidence of allergic diseases is rising, with the anti-allergy drug market in China expected to grow significantly. The desensitization treatment is recognized as the only method that can influence the disease process, unlike symptomatic treatments [6][48]. Product Performance - The dust mite drops have shown strong sales performance, with a revenue CAGR of 8.86% and a gross margin consistently above 95%. The mugwort pollen drops have rapidly gained market share since their launch, with a revenue increase of 117.58% in the first three quarters of 2025 [7][8]. Financial Projections - The company is expected to achieve net profits of 399 million yuan, 493 million yuan, and 600 million yuan for the years 2025, 2026, and 2027, respectively, with corresponding PE ratios of 41.0, 33.3, and 27.3 [5][9].