CCHT(SZ:000661)2024-03-11 16:00Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2] Core Views - The company has launched a "Quality Return Dual Improvement" plan, demonstrating confidence in long-term development. This plan includes several initiatives such as solidifying its core business in biopharmaceuticals and traditional Chinese medicine, focusing on innovation-driven growth, enhancing information disclosure quality, improving governance, prioritizing shareholder returns, and emphasizing social responsibility through ESG initiatives [6][7] Financial Performance - For the first three quarters of 2023, the company achieved revenue of 8.118 billion yuan, a 4% increase year-on-year, and a net profit attributable to shareholders of 3.524 billion yuan, a 2% increase year-on-year. The sales of long-acting growth hormone products increased by 30%, accounting for 29% of the overall growth hormone revenue [6][7] - The company expects net profits for 2023, 2024, and 2025 to be 4.646 billion yuan, 5.353 billion yuan, and 6.387 billion yuan, representing year-on-year growth of 12.2%, 15.2%, and 19.3% respectively [7][11] Product Development - The company has multiple products in various clinical stages, including long-acting follicle-stimulating hormone and monoclonal antibodies, with several products in Phase III clinical trials as of the end of Q3 2023 [6][7] - The company reported that Baike Bio achieved revenue of 1.824 billion yuan in 2023, a 70.3% increase, and a net profit of 501 million yuan, a 175.98% increase, driven by the approval and sales of the herpes zoster vaccine [6][7] Valuation - The company is expected to maintain stable growth in its core product, with a projected price-to-earnings ratio (P/E) of 12-15x for 2024, corresponding to a reasonable value range of 158.78 to 198.48 yuan [7][10]