KANGHUA BIOLOGICAL(SZ:300841) Haitong Securities·2024-04-30 09:02Investment Rating - The report maintains an "Outperform the Market" rating for the company [9]. Core Views - The company is expected to achieve net profits of 750 million yuan, 820 million yuan, and 910 million yuan for the years 2024 to 2026, representing year-on-year growth of 48%, 9%, and 11% respectively [2]. - The rabies vaccine continues to see growth, while the norovirus vaccine has entered global clinical stages, leading to a valuation range of 61.56 to 78.35 yuan based on a P/E ratio of 11 to 14 for 2024 [2]. Financial Performance - In 2023, the company reported revenue of 1.577 billion yuan, a year-on-year increase of 9%, with a net profit of 509 million yuan, a decrease of 15% [11]. - The operating cash flow improved significantly, reaching 570 million yuan, a year-on-year increase of 194% [11]. - The company’s revenue is projected to grow to 1.908 billion yuan in 2024, with a year-on-year growth rate of 21% [27]. Business Segmentation and Forecast - The company’s total revenue is expected to reach 2.399 billion yuan by 2026, with a consistent gross margin of approximately 94% [13]. - The sales volume of the rabies vaccine is projected to increase from 500,000 doses in 2023 to 575,000 doses in 2024 [13]. - The company has signed an exclusive licensing agreement with HilleVax for the development and commercialization of the six-valent norovirus vaccine outside of China, which includes an upfront payment of 15 million USD and potential milestone payments totaling up to 255.5 million USD [20][26].