转型阵痛已过，创新利刃出鞘

Investment Rating - The investment rating for the company is "Buy" with an upgrade noted in the report [3]. Core Insights - The report highlights that under the comprehensive support of policies for innovation and the normalization of centralized procurement, traditional pharmaceutical companies are increasingly transitioning to innovation. The company has successfully launched 15 innovative drugs, with sales from innovative drugs accounting for 44% of total sales in the first half of 2023, indicating that the transformation is nearing completion [2][3]. - The report emphasizes that the impact of centralized procurement on the company is nearing its end, with price pressures from medical insurance gradually releasing, and innovative products entering a phase of significant growth. The company has a rich pipeline of heavy-weight products in development, providing long-term growth momentum [2][3]. Summary by Sections Transition to Innovation - The company has transitioned from generic drugs to innovative drugs, with a focus on oncology, anesthesia, and contrast agents. In 2022, the innovative drug segment achieved a revenue of 8.116 billion yuan, accounting for 38% of total revenue. In the first half of 2023, innovative drug revenue reached 4.962 billion yuan [3][13]. - The report notes that the sales proportion of innovative drugs is expected to continue to increase as the company has multiple innovative products entering the market [4]. Sales and Operational Improvements - The company has streamlined its sales force, reducing the number of sales personnel from 17,138 in 2020 to 10,392 in 2022, resulting in increased productivity per salesperson [19]. - The gross profit margin and net profit margin have improved, with the gross margin at 84.2% and net margin at 20.5% in the first half of 2023, indicating enhanced operational efficiency [21]. Pipeline and Future Growth - The company has a robust pipeline in innovative drugs, particularly in oncology, autoimmune diseases, and chronic diseases. Key products include SHR-1701 (a PD-L1/TGF-β dual antibody) and SHR-0302 (a JAK1 inhibitor), both of which have received breakthrough therapy designations [71][82][90]. - The report indicates that the company is well-positioned to capture growth in the chronic disease market, with a focus on diabetes, hypertension, and metabolic diseases, leveraging its diverse product portfolio [104][106]. Financial Projections - The company is projected to achieve revenues of 23.52 billion yuan, 26.06 billion yuan, and 29.58 billion yuan for the years 2023, 2024, and 2025, respectively. The net profit is expected to reach 4.891 billion yuan, 6.021 billion yuan, and 7.259 billion yuan in the same years [128][129].