Investment Rating - The report maintains a "Buy" rating for the company, with a target price of HKD 11.50, indicating a potential upside of 109.4% from the current closing price of HKD 5.49 [1][12]. Core Insights - The company's performance in 2023 met expectations, with a revenue increase of 4.5% year-on-year to RMB 6.608 billion, while net profit decreased by 23.2% to RMB 715 million due to one-time losses from investments [1]. - The management has provided guidance for 2024, projecting a revenue growth of 10-15% and a 30% increase in operating net profit, with gross margin expected to recover to around 79% [1][2]. - The proportion of revenue from innovative drugs is expected to rise from 72% in 2023 to 80% by 2026, driven by the anticipated launch of five new products in the next two years [2]. - The company plans to enhance shareholder returns, proposing a dividend of RMB 0.16 per share, corresponding to a payout ratio of 59% [2]. Financial Summary - Revenue for 2023 was RMB 6.608 billion, with projections for 2024, 2025, and 2026 at RMB 7.783 billion, RMB 9.372 billion, and RMB 10.474 billion respectively, reflecting year-on-year growth rates of 17.8%, 20.4%, and 11.8% [5][13]. - The net profit for 2023 was RMB 715 million, with forecasts of RMB 1.013 billion for 2024, RMB 1.307 billion for 2025, and RMB 1.627 billion for 2026, indicating significant recovery and growth [5][13]. - The company’s gross margin is projected to improve, with estimates of 78.5% for 2024 and 79.0% for 2025 [8][13]. Research and Development Focus - Key R&D catalysts for 2024 include the completion of Phase III trials for several products, including a treatment for insomnia and a drug for triple-negative breast cancer [6]. - The company is focusing on differentiated products and unmet clinical needs, with plans to continue its development of innovative therapies [6].
业绩波动因素逐步出清，2024年轻装上阵，高增长可期