JINGXIN(SZ:002020) Guotai Junan Securities·2024-04-24 12:32Investment Rating - The report maintains a "Buy" rating for Jingxin Pharmaceutical (002020) with a target price of 14.04 CNY, while the current price is 10.32 CNY [5][6]. Core Views - The company shows steady revenue growth, with sales reforms beginning to yield positive results. The commercialization of a new insomnia drug and the advancement of its innovative pipeline are expected to drive future growth [6][5]. - The first innovative drug, Dazisni, has been approved and is set to launch in March 2024, which is anticipated to create a new engine for the domestic sedative-hypnotic market [6][5]. - The report highlights that the company's performance in Q1 2024 met expectations, with revenue of 1.061 billion CNY (+10.44%) and net profit of 171 million CNY (+13.23%) [6][5]. Financial Summary - Revenue is projected to grow from 3,999 million CNY in 2023 to 4,489 million CNY in 2024, reflecting a growth rate of approximately 12.3% [5][6]. - The net profit for 2023 is estimated at 673 million CNY, with an EPS forecast of 0.78 CNY for 2024 [6][5]. - The report indicates an improvement in profit margins, with a gross margin of 51.88% and a net margin of 16.33% in Q1 2024 [6][5]. Growth Drivers - The company is expanding its sales channels beyond hospitals to include retail pharmacies, e-commerce, and business circulation, which is expected to provide long-term growth momentum [6][5]. - The report notes that the raw material drug segment is expected to stabilize in 2023 after being affected by inventory cycles, while the medical device segment is anticipated to recover in 2024 due to increased domestic demand [6][5]. Valuation Metrics - The report provides valuation ratios, including a PE ratio of 13.42 and an EV/EBITDA of 10.81 for 2023, indicating a reasonable valuation compared to industry peers [5][6].