HAOHAI BIOTEC(SH:688366) Xinda Securities·2024-04-30 08:00Investment Rating - The investment rating for the company is "Buy" based on the expectation of continued growth in the hyaluronic acid segment and the potential approval of the fourth generation hyaluronic acid product [1]. Core Views - The company reported a revenue of 646 million yuan in Q1 2024, representing a year-on-year increase of 5.68%. The net profit attributable to the parent company was 97.54 million yuan, up 20.16% year-on-year, while the net profit excluding non-recurring items increased by 33.05% year-on-year [1]. - The hyaluronic acid segment is expected to maintain a strong growth trend, with a focus on the approval progress of the fourth generation hyaluronic acid. However, the ophthalmic segment may see a decline in revenue due to high base effects and increased competition [1]. - The company’s gross profit margin for Q1 2024 was 69.21%, a decrease of 2.28 percentage points year-on-year, primarily due to an increase in the proportion of OEM business for hyaluronic acid and the implementation of national procurement prices for some products [1]. - The company forecasts revenue growth from 2.99 billion yuan in 2024 to 4.02 billion yuan in 2026, with corresponding net profits expected to grow from 503 million yuan to 734 million yuan during the same period [2]. Financial Summary - The total revenue for 2022 was 2.13 billion yuan, increasing to 2.65 billion yuan in 2023, with an expected revenue of 2.99 billion yuan in 2024, reflecting a year-on-year growth rate of 12.7% [2]. - The net profit attributable to the parent company was 180 million yuan in 2022, significantly increasing to 416 million yuan in 2023, with projections of 503 million yuan in 2024, indicating a growth rate of 21.0% [2]. - The gross profit margin is projected to improve from 70.5% in 2023 to 71.2% in 2024, and the return on equity (ROE) is expected to rise from 7.4% in 2023 to 8.3% in 2024 [2].