Dongcheng Biochem(SZ:002675) EBSCN·2024-05-06 12:02Investment Rating - The report maintains a "Buy" rating for the company, considering the scarcity of its nuclear medicine assets [10]. Core Views - The company's performance in 2023 was impacted by the cyclical fluctuations in heparin raw materials and centralized procurement, while the nuclear medicine business remains stable and shows potential for future growth [1]. - Significant investment in research and development is being made to drive innovation in nuclear medicine, with a focus on integrating resources to enhance product development [1]. Summary by Relevant Sections Financial Performance - In 2023, the company achieved operating revenue of 3.276 billion yuan, a decrease of 8.58% year-on-year, and a net profit attributable to shareholders of 210 million yuan, down 31.75% year-on-year [2]. - For Q1 2024, the company reported operating revenue of 647 million yuan, a decline of 23.90% year-on-year, while net profit attributable to shareholders increased by 28.38% to 64 million yuan [1]. - The revenue breakdown for 2023 shows nuclear medicine sales at 1.017 billion yuan, up 11.20% year-on-year, while raw material sales were 1.678 billion yuan, down 18.61% due to low global demand [1]. Research and Development - The company invested 313 million yuan in R&D in 2023, a year-on-year increase of 77.23%, with 76.73% of this investment directed towards nuclear medicine [1]. - Key products in development include various nuclear medicine injections, with some currently in Phase III clinical trials [1]. Profit Forecast and Valuation - The profit forecast for 2024 and 2025 has been revised down to 306 million yuan and 366 million yuan, respectively, reflecting a decrease of 39% and 41% from previous estimates [1]. - The projected net profit for 2026 is 430 million yuan, with corresponding price-to-earnings ratios of 37, 31, and 27 for the years 2024, 2025, and 2026, respectively [1].