Sinocelltech(SH:688520) Huafu Securities·2024-04-28 03:00Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 62.84 CNY, indicating a potential upside from the current price of 47.06 CNY [4][15]. Core Insights - In Q1 2024, the company reported revenue of 613 million CNY, representing a year-on-year growth of 86.3%. The net profit attributable to the parent company was 74.2 million CNY, up 148.49% year-on-year, marking the first quarter of profitability [1][3]. - The domestic market for hemophilia A treatment shows significant room for growth, with a treatment penetration rate of less than 20% and an average patient medication level of only 5-6 million IU, which is below international preventive treatment standards [1]. - The company is expected to benefit from the rapid growth of its product, Anjain, which has seen a price reduction of 22% in the 2023 procurement round, making it more accessible to patients [1]. - The sales expenses increased significantly in Q1 2024, amounting to 125 million CNY, a rise of 73.42% year-on-year, driven by the approval of three monoclonal antibody products [1]. - Research and development expenses decreased by 9.45% year-on-year to 244 million CNY, as the company shifts focus from COVID-19 vaccine development to other competitive pipelines [1]. Financial Projections - Revenue projections for 2024-2026 are 2.8 billion CNY, 3.8 billion CNY, and 4.6 billion CNY, with growth rates of 48%, 36%, and 22% respectively [1][3]. - Net profit estimates for the same period have been adjusted to 310 million CNY, 690 million CNY, and 1.05 billion CNY, reflecting growth rates of 177%, 124%, and 54% respectively [1][3]. - The company is expected to maintain a strong market position with a projected PS ratio of 10x for 2024, leading to a reasonable market capitalization of 28 billion CNY [1].