SUNHERE(SZ:300452) Guotai Junan Securities·2024-04-29 05:02Investment Rating - The report maintains an "Overweight" rating for the company, with a target price of 18.50 CNY, indicating a potential upside from the current price of 12.44 CNY [6][19]. Core Views - The company's performance is in line with expectations, with a strong growth outlook for the full year driven by multiple factors [6]. - The company is positioned as a leading player in the pharmaceutical excipients sector, benefiting from accelerated import substitution and a robust demand recovery from downstream clients [6][19]. - The report highlights a projected revenue increase of 19.1% for 2023, with net profit expected to grow by 23.6% [6][19]. Summary by Sections Financial Performance - The company achieved a revenue of 839 million CNY in 2022, with a projected increase to 939 million CNY in 2023 and further to 1,070 million CNY in 2024 [19]. - The net profit attributable to shareholders was 162 million CNY in 2022, expected to rise to 188 million CNY in 2023 and 220 million CNY in 2024 [19]. - The report indicates an increase in EPS from 0.69 CNY in 2022 to 0.80 CNY in 2023, and further to 0.94 CNY in 2024 [19]. Growth Drivers - Key growth drivers include the recovery of production and operations among downstream clients, ongoing import substitution, and the expansion of the product matrix [6][19]. - The report notes that the cellulose product segment saw a revenue increase of 18.0%, while starch products and inorganic salts also contributed positively to revenue growth [6]. Market Position - The company is recognized as a high-tech enterprise under the National Torch Program and has received multiple accolades for its contributions to the industry [19]. - The report emphasizes the company's ability to maintain a premium valuation due to its leading market position in pharmaceutical excipients [6][19].