Gan & Lee(603087) 国泰君安·2024-04-26 07:32Investment Rating - The investment rating for the company is "Buy" with a target price of 60.03 CNY, maintaining the previous rating of "Buy" [1][2]. Core Views - The company's core products are experiencing rapid growth, and operational efficiency has significantly improved. The company has won bids for all its centralized procurement products, which are expected to enhance profits. Multiple potential catalysts indicate strong development momentum, justifying the "Buy" rating [1][2]. Summary by Sections Financial Performance - In 2023, the company's revenue reached 2.608 billion CNY, a substantial increase of 52.31% year-on-year. The net profit attributable to shareholders was 297 million CNY, marking a turnaround from losses [1][2]. - For Q1 2024, the company reported revenues of 560 million CNY and a net profit of 96 million CNY, reflecting a year-on-year increase of 95.04% [1][2]. Product Performance - The sales volume of the company's domestic formulation products grew by 66.36% year-on-year in 2023, with long-acting insulin sales increasing by 112.38% [1][2]. - The company has successfully raised prices for its insulin products following centralized procurement, which is expected to significantly boost profits [1][2]. Future Outlook - The company is expected to maintain strong growth due to the price increases of core products and the anticipated launch of new products in developed markets [1][2]. - The forecasted EPS for 2024-2026 is adjusted to 1.19/2.04 CNY (previously 1.05/1.90 CNY) and 2.65 CNY respectively, with a target price maintained at 60.03 CNY, corresponding to a PE of 29X for 2025 [1][2].