Shanghai Pharma(SH:601607) Xinda Securities·2024-04-28 07:00Investment Rating - The investment rating for Shanghai Pharmaceuticals (601607) is not explicitly stated in the provided report, but the analysis suggests a positive outlook based on revenue growth and innovation performance [1]. Core Insights - In Q1 2024, the company achieved a revenue of 701.53 billion yuan, representing a year-over-year increase of 6%. The net profit attributable to shareholders was 15.42 billion yuan, up 2% year-over-year [1]. - The pharmaceutical industrial business faced short-term pressure, while the pharmaceutical commercial business continued to grow steadily, with a revenue increase of 8% [1]. - The innovative drug segment saw a significant sales growth of approximately 33%, and the CSO business achieved a remarkable 128% year-over-year increase in sales [1]. - The company is actively expanding its vaccine promotion team, which has grown from 340 to over 720 members since Q1 2023 [1]. Summary by Sections Revenue Performance - Q1 2024 total revenue was 701.53 billion yuan, with the pharmaceutical industrial segment contributing 69.44 billion yuan (down 11% year-over-year) and the pharmaceutical commercial segment contributing 632.09 billion yuan (up 8% year-over-year) [1]. - The innovative drug sales and CSO business significantly boosted overall performance, indicating strong growth potential in these areas [1]. Profitability - The net profit attributable to shareholders for Q1 2024 was 15.42 billion yuan, with contributions from the industrial business at 6.74 billion yuan (down 4% year-over-year) and the commercial business at 8.32 billion yuan (up 1% year-over-year) [1]. - The report forecasts net profits for 2024-2026 to be 50.74 billion yuan, 55.68 billion yuan, and 61.22 billion yuan, respectively, indicating a strong growth trajectory [1]. Innovation and Development - The company introduced two new drug projects in Q1 2024, with one entering Phase II clinical trials and another seeking registration for market launch [1]. - The establishment of the 01LABS@HongKong innovation incubator aims to foster collaboration with startups focusing on innovative drug development [1]. - The Shanghai Pharmaceuticals Biopharmaceutical Industrial Base is expected to be operational in the second half of 2024, enhancing the company's R&D capabilities [1]. Financial Projections - Revenue projections for 2024-2026 are 2817.82 billion yuan, 3067.17 billion yuan, and 3340.72 billion yuan, with year-over-year growth rates of 8%, 9%, and 9% respectively [2]. - The expected earnings per share (EPS) for 2024-2026 are 1.37 yuan, 1.50 yuan, and 1.65 yuan, reflecting a positive outlook for profitability [2].