上海医药：优化研发项目，提升研发效率

Investment Rating - The report maintains a "Recommended" rating for Shanghai Pharmaceuticals [1] Core Views - Shanghai Pharmaceuticals has optimized its R&D projects, enhancing R&D efficiency by terminating four clinical trials, following the previous termination of three projects, which allows for better resource allocation towards core projects [1] - The company’s R&D investment for 2023 was CNY 2.602 billion, with R&D expenses accounting for 8.39% of industrial revenue [1] - The termination of early-stage projects, primarily monoclonal antibodies and small molecule projects, is expected to improve the efficiency of R&D expenses and enhance performance [1] - The new management team, which has recently completed its transition, is expected to drive reforms and improve operational vitality [1] Financial Summary - Projected revenue for 2024-2026 is CNY 284.66 billion, CNY 308.70 billion, and CNY 331.66 billion, respectively, with growth rates of 9.36%, 8.44%, and 7.44% [2] - Net profit projections for the same period are CNY 55.30 billion, CNY 61.72 billion, and CNY 67.94 billion, with growth rates of 46.76%, 11.61%, and 10.08% [2] - The company’s EPS is expected to be CNY 1.49, CNY 1.67, and CNY 1.83 for 2024-2026, with corresponding PE ratios of 12.58, 11.27, and 10.24 [2][4]