JINGXIN(SZ:002020) Capital Securities·2024-05-10 01:00Investment Rating - The report assigns a "Buy" rating for the company [8]. Core Views - The raw material pharmaceutical segment is gradually releasing capacity, and the medical device business is expected to recover. In 2023, the company's raw material drug revenue was 956 million yuan (+9.60%), with potential for increased revenue and profitability due to capacity upgrades and the completion of the first phase of the Shandong raw material drug base project. The medical device revenue was 637 million yuan (+1.39%), primarily affected by a slowdown in procurement due to industry policy adjustments, but is expected to recover as procurement restarts [3]. - The company has made adjustments to its sales system, transitioning from a "line-based" to a "hospital-retail" model, which is anticipated to enhance growth in the generic drug market. In 2023, finished drug revenue was 2.326 billion yuan (+4.98%), with a notable increase in the second half of the year. The launch of the new insomnia drug, Didasinib capsules, in March 2024 is expected to contribute positively to performance [20]. Financial Summary - In 2023, the company achieved total revenue of 3.999 billion yuan (+5.79%) and a net profit attributable to shareholders of 619 million yuan (-6.55%). For Q1 2024, revenue was 1.061 billion yuan (+10.44%) with a net profit of 171 million yuan (+13.23%) [21]. - Revenue projections for 2024 to 2026 are 4.497 billion yuan, 4.995 billion yuan, and 5.531 billion yuan, with year-on-year growth rates of 12.5%, 11.1%, and 10.7%, respectively. Net profit attributable to shareholders is expected to be 687 million yuan, 777 million yuan, and 883 million yuan, with growth rates of 11.0%, 12.9%, and 13.8% [9][21]. - The company's earnings per share (EPS) is projected to increase from 0.72 yuan in 2023 to 1.03 yuan in 2026, with corresponding price-to-earnings (P/E) ratios of 16.7, 15.0, 13.3, and 11.7 for the respective years [21].