Investment Rating - The report maintains an "Outperform" rating for CSPC Pharmaceutical Group [3][6][8] Core Views - The finished drug business showed strong growth in Q1 2024, with total revenue reaching RMB 8.98 billion, a year-on-year increase of 11.5% [5][8] - The gross margin improved to 72.3%, up by 3.8 percentage points, while net profit attributable to shareholders was RMB 1.61 billion, reflecting a 12.9% increase [5][8] - The report highlights the expected approval of multiple new products in 2024-2025, which is anticipated to drive further revenue growth [11] Summary by Sections Financial Performance - Total revenue for Q1 2024 was RMB 8.98 billion, with a gross margin of 72.3% [5][8] - Finished drug revenue was RMB 7.56 billion, up 17.7% year-on-year, with significant contributions from CNS, cardiovascular, and digestive metabolism segments [9][10] - The API business faced challenges, with vitamin C revenue declining by 11.8% due to reduced demand [9][10] Growth Drivers - The growth in finished drug revenue was attributed to new product launches and enhanced sales efforts in retail markets [10] - New products such as the acute stroke thrombolytic therapy and irinotecan liposomes are expected to contribute significantly to sales in 2024 [10][11] Future Outlook - The company forecasts revenue of RMB 35.21 billion for 2024, representing a 12% year-on-year growth, and net profit of RMB 6.88 billion, a 17.1% increase [11] - The target price is set at HK$8.69 per share, corresponding to a PE ratio of 12x for 2024 [6][11]
石药集团：24Q1成药业务增长强劲，多款新药有望年内获批