Sun-Novo(SH:688621) Changjiang Securities·2024-03-04 16:00Investment Rating - The report maintains a "Buy" rating for the company [8][15]. Core Insights - The company achieved a revenue of 954 million yuan in 2023, representing a year-on-year growth of 40.98%. The net profit attributable to the parent company was 194 million yuan, up 24.43% year-on-year, while the net profit excluding non-recurring items was 189 million yuan, reflecting a growth of 33.33% [2][7]. - The company is advancing its self-research projects alongside providing services for drug development, with significant progress in its innovative drug pipeline, including the STC007 project entering Phase II clinical trials [3][7]. - The company is expected to achieve net profits of 268 million yuan and 363 million yuan in 2024 and 2025, respectively, corresponding to price-earnings ratios of 25 times and 19 times based on the current stock price [8][23]. Financial Performance - The company reported a total revenue of 677 million yuan in 2022, with projections of 954 million yuan for 2023, 1.249 billion yuan for 2024, and 1.583 billion yuan for 2025 [23]. - The gross profit for 2023 is projected to be 509 million yuan, with a gross margin of 53% [23]. - Research and development expenses for the first three quarters of 2023 amounted to 83.13 million yuan, accounting for 12.01% of total revenue, indicating a strong commitment to R&D [13][20]. Research and Development - The company has a robust pipeline with over 290 projects under research, focusing on innovative drugs, modified new drugs, and generic drugs, with a significant portion of R&D personnel holding advanced degrees [13][23]. - The R&D investment is primarily directed towards pain relief, kidney disease, oncology, cardiovascular, and antibacterial medications, with a focus on long-acting formulations and complex injectables [13][23]. Market Position - The company is enhancing its market presence through steady growth in new orders and strengthening its technical platform and talent pool, which is expected to contribute to sustained performance [7][19]. - The company’s stock performance has shown a relative decline compared to the CSI 300 index over the past year, indicating potential market challenges [17].