CR Double-Crane(600062) 湘财证券·2024-05-05 02:02Investment Rating - The report initiates coverage with a "Buy" rating for China Resources Double Crane [4] Core Views - The company is positioned as a core pharmaceutical platform under China Resources Group, transitioning from a large infusion platform to a comprehensive chronic disease pharmaceutical platform, with a robust operational framework [2][10] - The strategic focus is on "nurturing innovation through generics and driving future growth through innovation," with increased internal R&D investment and leveraging M&A advantages to enhance innovation capabilities [2][25] Summary by Sections 1. Company Overview - China Resources Double Crane has a long history of 85 years, evolving through multiple industry cycles and establishing itself as a significant player in the pharmaceutical sector [10][11] - The company has transitioned from a large infusion manufacturer to a comprehensive pharmaceutical company, with a diversified product portfolio [19] 2. Product Portfolio and Growth - The specialized product portfolio features differentiated offerings, with many products holding leading market positions, expected to maintain steady growth [3] - The chronic disease platform is nearing the end of the impact from centralized procurement, with new product procurement benefits anticipated to emerge [3] - The large infusion segment remains a stable cash flow business, with ongoing strategic optimization and automation expected to enhance gross margins [3][19] 3. Financial Projections - Revenue is projected to reach CNY 110.7 billion, CNY 121.8 billion, and CNY 135.1 billion for 2024-2026, with growth rates of 8.3%, 10%, and 11% respectively [4][5] - Net profit is expected to be CNY 14.9 billion, CNY 16.8 billion, and CNY 19.1 billion for the same period, with growth rates of 11%, 13%, and 14% [4][5] - The earnings per share (EPS) for 2024-2026 are forecasted at CNY 1.43, CNY 1.62, and CNY 1.83, with corresponding price-to-earnings (PE) ratios of 14.4, 12.8, and 11.2 [4][5] 4. R&D and Innovation Strategy - The company has significantly increased R&D investment, reaching CNY 8.23 billion in 2023, with a focus on building a comprehensive innovation platform [26][28] - The R&D personnel count has grown from 464 in 2019 to 965 in 2023, reflecting a commitment to enhancing innovation capabilities [26][27] - The strategic focus includes developing small molecule innovations and establishing technology platforms for various therapeutic areas, including oncology and pediatrics [28]