AMOYTOP(SH:688278)2024-03-31 16:00Investment Rating - The report assigns a "Recommended" rating for the company, marking the first coverage [1]. Core Insights - The company achieved a revenue of 2.1 billion in 2023, representing a year-on-year growth of 37.55%. The net profit attributable to shareholders was 555 million, up 93.52% year-on-year [1][12]. - The core product, Pegasys, saw a revenue of 1.79 billion, with a year-on-year growth of 54.18%, and a sales volume of 2.8467 million units, reflecting a growth of 46.68% [1][16]. - The company is focused on enhancing its R&D capabilities, with R&D investment reaching 280 million in 2023, a 34.96% increase year-on-year [1][19]. Summary by Sections Company Performance - In 2023, the company reported a total revenue of 2.1 billion, with a net profit of 555 million, and a significant increase in operating cash flow by 41.01% to 512 million [1][12]. - The gross margin for 2023 was 93.33%, an increase of 4.41 percentage points year-on-year, while the net margin rose to 26.45%, up 7.65 percentage points [12][16]. Product Development - Pegasys remains the company's core product, accounting for 85.24% of total revenue in 2023, with a gross profit contribution of 87.24% [16][27]. - The company is advancing its clinical trials for new indications, with the registration application for chronic hepatitis B treatment recently accepted [1][27]. Financial Forecast - The company expects revenues of 2.827 billion, 3.670 billion, and 4.584 billion for 2024, 2025, and 2026, respectively, with corresponding net profits of 760 million, 1.025 billion, and 1.311 billion [29][31]. - The projected growth rates for revenue are 35%, 30%, and 25% for the years 2024 to 2026 [31]. Valuation Analysis - The current stock price corresponds to a PE ratio of 33, 25, and 19 for the years 2024 to 2026, indicating a favorable valuation compared to peers [29][31]. - The report suggests a valuation premium due to the company's leading position in the hepatitis B treatment market and the low penetration rate of Pegasys [29][31].