Investment Rating - The report assigns a "Buy" rating for the company Huayu Pharmaceutical-W (688553) [2] Core Insights - Huayu Pharmaceutical is a leading company in complex injectable oncology drugs, with risks from centralized procurement being gradually alleviated. By the end of 2024, the company had launched 38 products in the domestic market, with 22 in oncology and 16 in other therapeutic areas. The company achieved a revenue of 1.094 billion yuan in 2024, a year-on-year increase of 18.05%, and a net profit of 92 million yuan, up 39.55% year-on-year [5][27] - The company has shifted its focus towards international markets, with overseas revenue reaching 160 million yuan in 2024, accounting for approximately 15% of total revenue, and showing a growth of over 90% year-on-year. The company has obtained multiple GMP certifications and has launched products in 68 countries and regions [6][18] - Huayu Pharmaceutical is transitioning into a benchmark enterprise for innovative drugs, with a rich pipeline of research projects. By the end of 2024, the company had 14 Class I innovative drug projects and 5 Class II modified new drug projects, with 6 projects already in clinical stages [7][19] Summary by Sections 1. Oncology Injectable Leader, Centralized Procurement Risks Alleviated - Huayu Pharmaceutical has established itself as a leader in complex injectable oncology drugs, with a strategic transformation completed [20] - The company has actively participated in centralized procurement, with most core products selected and renewed, reducing reliance on single major products [23][27] 2. Generic Drugs: Breaking into International Markets - The company has significantly increased its product offerings, with 38 products launched by the end of 2024, reducing dependence on single products [42] - The international market has become a key growth area, with overseas revenue growing rapidly and a well-established registration system for overseas products [45][46] 3. Innovative Drugs: Transitioning Benchmark Enterprise - The company has a robust pipeline of innovative drugs, with several projects entering clinical stages, indicating a successful transition from generic to innovative drug development [19][7] - Key projects include HY-0007, a tri-target antibody fusion protein, which has the potential to become a cornerstone therapy in immuno-oncology [8][19] 4. Profit Forecast and Investment Rating - The company is expected to generate revenues of 1.054 billion yuan, 1.304 billion yuan, and 1.635 billion yuan from 2025 to 2027, with net profits projected to be -42 million yuan, 93 million yuan, and 148 million yuan respectively [9][11] - The report emphasizes the company's long-term growth potential, particularly in the context of its transition to innovative drugs and international market expansion [9][19]