EASTONBIOPHARMACEUTICALS(SH:688513) Huachuang Securities·2025-12-30 10:43Investment Rating - The report maintains a "Strong Buy" rating for the company with a target price of 87.6 CNY per share [2][10]. Core Insights - The report emphasizes the company's differentiated innovation capabilities, particularly through the integration of its research and development (R&D) systems, which is expected to enhance its competitive edge in the pharmaceutical market [8][9]. - The company has made significant strides in its product pipeline, particularly in the controlled narcotics sector, and is poised to become a leader in this field [26][27]. - The integration of Shanghai Chaoyang, focusing on targeted protein degradation, is expected to bolster the company's R&D capabilities and expand its product offerings [9][10]. Financial Summary - Total revenue projections for 2024A, 2025E, 2026E, and 2027E are 1,350 million, 1,376 million, 1,567 million, and 1,933 million CNY respectively, with year-on-year growth rates of 20.8%, 2.0%, 13.8%, and 23.4% [3]. - Net profit attributable to shareholders is forecasted to be 238 million, 277 million, 316 million, and 388 million CNY for the same years, reflecting growth rates of 5.1%, 16.2%, 14.0%, and 22.9% [3][10]. - The price-to-earnings (PE) ratios are projected to be 44, 38, 34, and 27 for the years 2024A to 2027E [3]. R&D and Product Pipeline - The company has established a robust pipeline in the controlled narcotics sector, with recent approvals for key products such as Buprenorphine and Butorphanol, which are expected to significantly contribute to revenue growth [26][28]. - The report highlights the potential of HP-001, a leading candidate in the targeted protein degradation space, which has shown promising clinical results [9][10]. - The integration of R&D efforts between Chengdu Yuandong and Shanghai Chaoyang is anticipated to create a dual-pathway for innovation, enhancing the company's overall R&D efficiency [9][10].