2024-03-28 16:00Investment Rating - The report maintains an "OUTPERFORM" rating for Sino Biopharmaceutical [3][5][9]. Core Views - The company achieved a revenue of RMB 26.2 billion in 2023, a slight increase of 0.7%, with innovative product revenue reaching RMB 9.9 billion, up 13.3% year-on-year. Innovative products now account for 38% of total revenue [4][9]. - The operational efficiency of the company continues to improve, with a decrease in sales management expense ratio to 42.2%, down 2.8 percentage points from 2022. R&D expenses were RMB 4.4 billion, representing a 5.7% increase, with the R&D expense ratio at 16.8% [4][5][9]. - The company is focusing on four major therapeutic areas: oncology, hepatology, respiratory, and surgery/analgesia, with a strong pipeline of innovative products expected to drive future growth [4][9]. Summary by Sections Financial Performance - In 2023, the gross profit margin was 81.0%, with sales expenses of RMB 9.2 billion and administrative expenses of RMB 1.9 billion. The adjusted net profit attributable to the parent company was RMB 2.6 billion, reflecting a 1.5% increase [4][9]. - Revenue forecasts for 2024 and 2025 have been adjusted to RMB 29.6 billion and RMB 33.5 billion, respectively, with expected year-on-year growth of 12.9% and 13.4% [5][9]. Product Pipeline and Innovation - The company has 11 innovative products in the market, including Tianqingganmei and anlotinib, with several new products expected to be approved in 2024 [4][9]. - The company has submitted NDA for KRAS G12C and is advancing in the development of various drugs in the hepatology and respiratory fields, indicating a robust pipeline [4][9]. Operational Efficiency - The report highlights a continuous improvement in operational efficiency, with a 4% increase in per capita marketing output in 2023. The focus on core business and divestment of non-core operations is expected to further enhance profit margins [4][5][9].