Investment Rating - The investment rating for the company is "Accumulate" [6] Core Views - The company is expected to achieve rapid growth in revenue and profit in 2024, driven by the robust development of its core API business and the rapid expansion of its formulation business. The company has high competitive barriers, a rich product portfolio, and a unique second growth curve [1][2] Financial Performance - In 2024, the company achieved revenue of 1.476 billion yuan (up 16.89% year-on-year) and a net profit attributable to shareholders of 355 million yuan (up 22.59 year-on-year). The net profit after deducting non-recurring items was 351 million yuan (up 34.25% year-on-year) [2] - For Q1 2025, the company reported revenue of 402 million yuan (up 19.78% year-on-year) and a net profit attributable to shareholders of 119 million yuan (up 45.30% year-on-year) [2] Growth Analysis - The API and intermediate business generated revenue of 1.141 billion yuan in 2024 (up 7.73% year-on-year), with cardiovascular products contributing 432 million yuan (up 43.81% year-on-year). The formulation business achieved revenue of 220 million yuan (up 144.87% year-on-year) due to increased terminal coverage of Dydrogesterone tablets [2][3] Profitability - The company's gross margin for 2024 was 58.56% (up 2.64 percentage points year-on-year), and the net profit margin was 24.04% (up 1.14 percentage points year-on-year). The improvement in profitability is attributed to the higher proportion of high-margin formulation business and improved margins in certain API products [4] Earnings Forecast and Valuation - The expected EPS for 2025, 2026, and 2027 are 1.14 yuan, 1.45 yuan, and 1.77 yuan per share, respectively. The company is projected to maintain steady revenue and profit growth supported by its high-barrier API and formulation products [5]