NHWA(SZ:002262) INDUSTRIAL SECURITIES·2024-04-13 16:00Investment Rating - The report maintains an "Accumulate" rating for the company [1] Core Views - The company achieved a revenue of 5.04 billion yuan in 2023, representing a year-on-year increase of 17.3%. The net profit attributable to shareholders was 1.04 billion yuan, up 15.1% year-on-year, with a net profit excluding non-recurring items of 1.01 billion yuan, reflecting a 16.1% increase [2][3] - The company's cash flow from operating activities was 1.01 billion yuan, an increase of 17.1% year-on-year, with a gross margin of 72.8%, down 3.43 percentage points year-on-year [2] - In Q4 2023, the company reported a revenue of 1.39 billion yuan, a year-on-year increase of 17.58%, but the net profit attributable to shareholders decreased by 4.89% to 151 million yuan [3] - The company has over 70 research projects underway, with R&D expenses of 614 million yuan in 2023, a growth of 23.92% compared to the previous year [3] - The company is focused on central nervous system drugs, with significant growth expected from its pain relief product line and new product launches [4] Financial Summary - For 2023, the company reported a revenue of 5.04 billion yuan and a net profit of 1.04 billion yuan, with projected revenues of 5.96 billion yuan in 2024, 7.12 billion yuan in 2025, and 8.54 billion yuan in 2026, reflecting growth rates of 18.3%, 19.5%, and 19.8% respectively [5] - The gross margin is expected to be 71.3% in 2024, 71.6% in 2025, and 70.8% in 2026, while the return on equity (ROE) is projected to increase from 16.1% in 2023 to 18.0% in 2026 [5][6] - The earnings per share (EPS) are forecasted to be 1.21 yuan in 2024, 1.46 yuan in 2025, and 1.76 yuan in 2026, with corresponding price-to-earnings (PE) ratios of 18X, 15X, and 12X [4][5]