Sun-Novo(SH:688621) Orient Securities·2024-04-29 02:02Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 63.12 CNY for 2024 [5][4]. Core Insights - The company achieved a revenue of 932 million CNY in 2023, representing a year-on-year growth of 37.8%, and a net profit attributable to the parent company of 185 million CNY, up 18.1% year-on-year. In Q1 2024, the revenue was 252 million CNY, growing 8.5% year-on-year, with a net profit of 73 million CNY, a significant increase of 51.8% year-on-year. The stable growth in performance is attributed to the company's strong R&D capabilities and continuous enhancement of integrated service capabilities, establishing a leading one-stop drug research and development service platform in China [1][3][4]. - New orders continued to grow rapidly, highlighting the company's comprehensive service capability. In 2023, the company signed new orders worth 1.504 billion CNY, a year-on-year increase of 36.5%, with cumulative orders on hand reaching 2.566 billion CNY, up 28.7% year-on-year. The ample backlog of orders lays a solid foundation for the company's future development. In 2023, the revenue from the pharmaceutical research segment was 570 million CNY, growing 28.7% year-on-year, while the clinical trial and bioanalysis segment saw revenue of 360 million CNY, a rapid growth of 54.5% [1][2][4]. - The company's innovation capabilities are outstanding, with self-developed value-added businesses showing significant potential. In 2023, the company had three new drugs approved for clinical trials and 126 drug applications accepted for market registration. The company holds 19 first-generic drug registration approvals, with rights-sharing on seven projects. The R&D investment in 2023 totaled 124 million CNY, a year-on-year increase of 37.9%, accounting for 13.3% of revenue. The continuous increase in R&D investment is expected to provide stable profit sources through a unique rights-sharing model, enhancing the company's long-term development prospects [1][2][4]. Financial Summary - In 2023, the company's revenue was 932 million CNY, with a year-on-year growth of 37.8%. The operating profit was 194 million CNY, reflecting a growth of 14.7%. The net profit attributable to the parent company was 185 million CNY, with an 18.1% increase. The earnings per share (EPS) for 2023 was 1.65 CNY. The gross margin was 56.7%, and the net margin was 19.8% [2][4][5].