XJZY(SZ:002332) Huachuang Securities·2024-05-09 06:32Investment Rating - The report maintains a "Strong Buy" rating for Xianju Pharmaceutical (002332) with a target price of 17 CNY, reflecting a favorable growth outlook and competitive advantages in the steroid hormone sector [5][12]. Core Views - Xianju Pharmaceutical's raw material drug sales increased by 3% in 2023, reaching 1.786 billion CNY, despite price declines due to intensified market competition. The company is expected to achieve stable growth in its raw material drug business in 2024 as market conditions improve [5][12]. - The formulation segment faced challenges in 2023 due to centralized procurement, but early signs of recovery were noted in Q1 2024, with a 13% year-on-year increase in sales [5][12]. - The company has made significant progress in regulatory approvals and certifications, enhancing its competitive edge in the market [5][12]. Financial Summary - In 2023, Xianju Pharmaceutical reported total revenue of 4.123 billion CNY, a decrease of 5.85% year-on-year, and a net profit of 563 million CNY, down 24.86% [12][13]. - For 2024, the projected net profit is 672 million CNY, representing a year-on-year growth of 19.3%, with earnings per share (EPS) expected to be 0.68 CNY [12][13]. - The company's price-to-earnings (PE) ratios for 2024, 2025, and 2026 are projected to be 18, 14, and 11, respectively, indicating a favorable valuation compared to industry peers [12][13].