Tianfeng Securities·2024-04-01 16:00Investment Rating - The report maintains a "Buy" rating for China Biologic Products Holdings, with a target price of 3.02 HKD [1]. Core Views - The company reported a revenue of 26.2 billion HKD for 2023, a year-on-year increase of 0.7% (excluding discontinued operations), while the net profit attributable to shareholders was 2.33 billion HKD, down 8.3% year-on-year [1]. - The innovative drug segment achieved a revenue of 9.89 billion HKD, growing 13.3% year-on-year, and accounted for 37.8% of total revenue, an increase of 4.3 percentage points from the previous year [1]. - The company is focusing on innovation and has been optimizing its asset and business structure since 2023, including divesting non-core businesses [1]. Summary by Sections Financial Performance - Revenue for 2023 was 26.2 billion HKD, with a net profit of 2.33 billion HKD, reflecting a decline due to underperformance from associates [1]. - Adjusted non-HKFRS net profit was 2.59 billion HKD, a 1.5% increase year-on-year [1]. Innovative Drug Segment - The core innovative drug, Anlotinib, is expanding its commercialization potential with multiple combination therapies entering clinical trials [1]. - The company has introduced nine potential products since 2021, with significant progress in clinical trials for key drugs expected to contribute to revenue growth [1]. Generic Drug Segment - The generic drug segment remains promising, with several products entering the centralized procurement range, and new biosimilars launched in 2023 expected to drive growth [1]. Organizational Restructuring - The company has sold off its non-core pharmaceutical distribution businesses to focus on innovative drug development and enhance its global presence [1]. Earnings Forecast - Projected revenues for 2024-2026 are 29.84 billion HKD, 33.69 billion HKD, and 37.94 billion HKD, respectively, with adjusted non-HKFRS net profits expected to be 2.98 billion HKD, 3.38 billion HKD, and 3.88 billion HKD [1].