SUNHERE(SZ:300452) Capital Securities·2024-05-21 05:00Investment Rating - The report maintains a "Buy" rating for the company [18]. Core Views - The company achieved a revenue of 839 million yuan in 2023, representing a year-on-year increase of 19.12%, with a net profit attributable to shareholders of 162 million yuan, up 23.58% [7]. - The company is expected to continue stable growth in 2024, driven by the release of new production capacity and the ongoing trend of import substitution in the pharmaceutical excipients market [18]. - The company has successfully completed the import substitution for several key products, contributing significantly to domestic sales growth, which reached 739 million yuan in 2023, an increase of 21.09% [18]. Summary by Sections Financial Performance - In 2023, the company reported a revenue of 839 million yuan and a net profit of 162 million yuan, with a quarterly revenue of 238 million yuan in Q1 2024, showing a slight decline of 4.05% year-on-year [7][8]. - The projected revenues for 2024, 2025, and 2026 are 977 million yuan, 1.124 billion yuan, and 1.281 billion yuan, with year-on-year growth rates of 16.5%, 15.0%, and 13.9% respectively [8][9]. Product Segmentation - Revenue from cellulose and its derivatives reached 388 million yuan in 2023, up 18.02%, with expectations for continued growth in 2024 due to the recovery in demand for plant-based capsules [1]. - The starch and its derivatives segment generated 202 million yuan, reflecting a growth of 14.06%, benefiting from increased demand for pandemic-related pharmaceuticals [1]. - Other products, including PVP K30 and cross-linked PVP, saw a revenue increase of 35.84%, totaling 177 million yuan [1]. Capacity Expansion - The new pharmaceutical excipient production base is set to significantly increase capacity for key products such as microcrystalline cellulose and hydroxypropyl methylcellulose, which will be crucial for driving performance growth in the next 2-3 years [1][18].