YIFAN PHARMACEUTICAL(SZ:002019) GOLDEN SUN SECURITIES·2024-04-22 01:32Investment Rating - The report maintains a "Buy" rating for Yifan Pharmaceutical (002019.SZ) [4][11]. Core Views - Yifan Pharmaceutical's revenue for 2023 reached 4.068 billion yuan, a year-on-year increase of 6.03%, while the net profit attributable to shareholders was -551 million yuan, a significant decline of 388.19% [1]. - The company is expected to experience a performance turnaround in 2024, driven by its innovative pipeline and the implementation of its "big product" strategy, with projected net profits of 574 million yuan in 2024, representing a growth rate of 204% [1][2]. Financial Performance Summary - Revenue: 2023 revenue was 4.068 billion yuan, with a growth rate of 6.0%. Projections for 2024-2026 are 4.882 billion yuan (20.0% growth), 6.102 billion yuan (25.0% growth), and 7.567 billion yuan (24.0% growth) respectively [2][10]. - Net Profit: The net profit for 2023 was -551 million yuan, with projections of 574 million yuan in 2024, 727 million yuan in 2025, and 943 million yuan in 2026, indicating significant recovery [2][10]. - Earnings Per Share (EPS): EPS for 2023 was -0.45 yuan, with forecasts of 0.47 yuan in 2024, 0.59 yuan in 2025, and 0.77 yuan in 2026 [2][10]. - Profitability Ratios: The gross margin for 2023 was 47.84%, with expectations of improvement to 50.0% in 2024 and further increases in subsequent years [1][10]. Product and Innovation Pipeline Summary - The company aims to cultivate a "big product" cluster, targeting significant revenue contributions from its innovative products, including the expected launch of 8-10 new products in the Asia-Pacific and emerging markets [1]. - The innovative pipeline includes the product Yili Shou, which is anticipated to generate milestone revenue of 72 million yuan in 2024, with a peak sales potential exceeding 5 billion yuan [1]. - The company is also advancing its clinical trials for F-652, with plans to initiate key clinical studies in 2024 [1]. Market Position and Strategy Summary - Yifan Pharmaceutical's strategy focuses on expanding its product offerings and enhancing its international presence, with specific targets for product sales in both domestic and international markets [1]. - The company has successfully introduced Hyruan ONE, a product expected to achieve significant market penetration due to its unique dosing regimen [1]. Valuation Summary - The report projects a price-to-earnings (P/E) ratio of 23X for 2024, decreasing to 14X by 2026, reflecting the anticipated recovery in profitability [1][2].