JINGXIN(SZ:002020) Ping An Securities·2024-04-24 09:00Investment Rating - The report recommends a "Strong Buy" rating, expecting the stock to outperform the market by over 20% within the next six months [6][19]. Core Insights - The company has a strong cash position of 2.07 billion, which supports the ongoing development of multiple psychiatric and neurological drug pipelines [13]. - The first class new drug, Didasin Capsules, for short-term treatment of insomnia, was officially launched at the end of March 2024, with ongoing Phase IV clinical trials to further validate its safety [13]. - Revenue projections for 2024-2026 are 4.399 billion, 5.019 billion, and 5.770 billion respectively, with net profits of 698 million, 821 million, and 977 million, indicating a consistent growth outlook [14]. Financial Summary - Revenue for 2022 was 3.78 billion, with a year-over-year growth of 13.3%. For 2023, revenue is projected at 3.999 billion, reflecting a 5.8% increase [2]. - Net profit for 2022 was 662 million, with a decrease to 619 million in 2023, but expected to rise to 698 million in 2024, showing a recovery trend [2]. - Gross margin is expected to improve from 50.6% in 2023 to 57.5% by 2026, while net margin is projected to increase from 15.5% to 16.9% over the same period [2][18]. Operational Performance - The company has adjusted its sales structure for finished drugs, focusing on both hospital and retail markets, which has begun to show positive results in sales capabilities and cost reduction [38]. - The gross margin for Q1 2024 was reported at 51.88%, an improvement of 1.90 percentage points, indicating effective cost management and sales strategy [38]. - The net profit margin for Q1 2024 was 16.33%, reflecting a 0.53 percentage point increase, further demonstrating the company's improving profitability [38].