Hengrui Pharma(SH:600276) Orient Securities·2024-05-21 01:02Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 51.90 CNY based on a 61 times price-to-earnings ratio for 2024 [2][4]. Core Insights - The company has licensed its proprietary GLP-1 product portfolio to Hercules, receiving a 19.9% equity stake in Hercules and licensing fees as part of the deal. This transaction marks a new model and record for the company's licensing efforts [1]. - The GLP-1 product portfolio includes three key products: HRS-7535, HRS-9531, and HRS-4729, targeting diabetes and weight loss, with significant clinical milestones expected in the near future [1]. - The company has accelerated its licensing activities, achieving five licensing deals in 2023 alone, totaling over 4 billion USD, indicating its growing global competitiveness in innovative drug development [1]. Financial Summary - The company’s revenue is projected to grow from 22,820 million CNY in 2023 to 36,053 million CNY by 2026, reflecting a compound annual growth rate (CAGR) of approximately 16.4% [2][7]. - The net profit attributable to the parent company is expected to increase from 4,302 million CNY in 2023 to 7,741 million CNY in 2026, with a CAGR of 18.1% [2][7]. - Earnings per share (EPS) are forecasted to rise from 0.67 CNY in 2023 to 1.21 CNY in 2026 [2][7].