KEXING BIOPHARM CO.(SH:688136) Guoyuan Securities·2024-03-31 16:00Investment Rating - The report gives a "Buy" rating for the company, with a target price of 15.87 CNY per share [45]. Core Viewpoints - The company is positioned as a leading innovative biopharmaceutical enterprise focusing on recombinant protein drugs and microbiome preparations, aiming to become a high-quality biopharmaceutical leader serving global patients [42]. - The company has successfully established a relatively complete overseas commercial system, achieving a historical high in overseas revenue of 160 million CNY in 2022, representing a 61.5% increase [44]. - The company’s three major products have successfully participated in centralized procurement, which helps mitigate future price reduction risks [43][50]. Summary by Sections Company Overview - The company, founded in 1997, specializes in the research, production, and sales of recombinant protein drugs and microbiome preparations, focusing on various therapeutic areas including antiviral, oncology, and immune diseases [75]. - The core management team has extensive industry experience, with key executives having over 10 years in the pharmaceutical sector [76]. Financial Performance - The company’s revenue from 2018 to 2022 showed a compound annual growth rate (CAGR) of approximately 7.2%, with a projected revenue of 1.25 billion CNY in 2023, a decrease of 4.32% from the previous year [10][53]. - The company reported a net profit loss in 2022, primarily due to high R&D investments and increased sales expenses [10][53]. Product Portfolio - The main revenue sources are four key products: Epoetin (recombinant human erythropoietin), Interferon α1b, Granulocyte Colony-Stimulating Factor, and a probiotic product [14]. - Epoetin has seen significant market growth, with revenue increasing from less than 440 million CNY in 2018 to over 720 million CNY in 2022, achieving a CAGR of 13.5% [36]. Market Expansion - The company has a strong presence in emerging markets, achieving 100% coverage in countries with populations over 100 million and among the top 30 GDP-ranked emerging markets [44]. - The company is expected to accelerate revenue growth in overseas markets, with projected revenue increases of 11.87% and 38.76% in 2024 and 2025, respectively [45]. R&D Investment - The company has been increasing its R&D investment, with a focus on innovative drug development, which is expected to enhance profitability in the long term [30][86]. - Several R&D projects are entering critical clinical stages, indicating a robust pipeline for future growth [45].