Sun-Novo(SH:688621) ZHONGTAI SECURITIES·2024-02-26 16:00Investment Rating - The report maintains a "Buy" rating for the company, with a market price of 60.02 yuan [1]. Core Views - The company's main business continues to grow rapidly, and it is expected that self-developed products will bring a second growth curve [5]. - The company reported a revenue of 9.54 billion yuan in 2023, a year-on-year increase of 40.98%, and a net profit of 1.94 billion yuan, up 24.43% year-on-year [8]. - The strong revenue growth in Q4 2023 was driven by market expansion and increased R&D capabilities, despite a slight decline in net profit [8]. - The company is focusing on self-research and development of innovative drugs, with several projects already approved for clinical trials [8]. Summary by Sections Financial Performance - In 2023, the company achieved a revenue of 9.54 billion yuan, with a growth rate of 40.98% year-on-year. The net profit reached 1.94 billion yuan, reflecting a 24.43% increase [8]. - The revenue for Q4 2023 was 2.62 billion yuan, showing a strong year-on-year growth of 44.40% [8]. - The company expects revenues for 2023-2025 to be 9.54 billion yuan, 12.72 billion yuan, and 16.34 billion yuan, with growth rates of 40.98%, 33.36%, and 28.41% respectively [8]. R&D and Growth Strategy - The company has expanded its workforce in the pharmaceutical research sector to 852 employees, a 15.92% increase, and has established a new division for pet medications [8]. - The clinical trial and bioanalysis services segment has also seen growth, with personnel increasing to 333, a 34.82% rise [8]. - The company has three new drug projects approved for clinical trials and has received 31 production registration approvals [8]. Profitability and Valuation - The report adjusts the profit forecast, expecting net profits for 2023-2025 to be 1.94 billion yuan, 3.04 billion yuan, and 4.10 billion yuan, with corresponding P/E ratios of approximately 34.6, 22.1, and 16.4 [8]. - The company is expected to maintain a high gross margin, currently at 55.5%, with projections for future years [31].