KEXING BIOPHARM CO.(SH:688136) Huafu Securities·2024-05-23 01:30Investment Rating - The report gives a "Buy" rating for the company, marking it as the first coverage [4]. Core Insights - The company is expected to experience a revenue growth rate of 14%, 22%, and 34% from 2024 to 2026, with net profit growth rates of 115%, 296%, and 78% respectively [4]. - The company has established a strong overseas commercialization system over 20 years, focusing on emerging markets with significant potential for pharmaceutical consumption growth [2][60]. - The introduction of new products, particularly albumin-bound paclitaxel, is anticipated to open up high-standard regulatory markets and drive additional revenue [3][68]. Financial Data and Valuation - Revenue for 2022 was 1,316 million yuan, with a projected decline to 1,259 million yuan in 2023, followed by growth to 1,438 million yuan in 2024 [1]. - Net profit is expected to turn positive in 2024, with projections of 26 million yuan, increasing to 203 million yuan by 2026 [1]. - The earnings per share (EPS) is projected to be 0.13 yuan in 2024, 0.52 yuan in 2025, and 1.02 yuan in 2026 [1]. Product and Market Position - The company’s core products, including Epoetin (依普定) and Interferon (赛若金), contribute over 95% of its revenue, with Epoetin being a leading product in the domestic market [19][51]. - The company has maintained a strong market position, with Epoetin ranking second in market share and Interferon holding the first position in its category [51][55]. - The company has a robust pipeline of products, with ongoing clinical trials and new product introductions expected to enhance its market presence [59][68]. Overseas Expansion - The company has successfully penetrated over 40 countries, including Brazil and the Philippines, with overseas revenue reaching 140 million yuan in 2023 [2][61]. - The focus on emerging markets is expected to yield significant growth, supported by a large population base and increasing GDP [2][63]. - The company has established long-term partnerships with over 100 clients in these markets, enhancing its competitive edge [2][60].