Investment Rating - The investment rating for Xianju Pharmaceutical (002332.SZ) is "Buy" (maintained) [1][3][18] Core Views - The report indicates that negative factors are gradually being resolved, and a transition between old and new growth drivers is expected, making an inflection point worth anticipating [1][3] - The company's performance is under pressure due to intensified competition in raw materials and pricing pressures in the formulation business, but there are signs of recovery with new product approvals and a potential turnaround in performance [3][4] Financial Performance Summary - For 2025H1, the company achieved revenue of 1.869 billion yuan, a year-on-year decrease of 12.56%, and a net profit attributable to shareholders of 308 million yuan, down 9.26% year-on-year [3][5] - The revenue for 2025 is projected to be 3.986 billion yuan, with a slight decline of 0.36%, followed by growth rates of 11.70% and 15.85% in 2026 and 2027, respectively [1][3] - The net profit attributable to shareholders is expected to be 632 million yuan in 2025, reflecting a significant year-on-year increase of 59.10% [1][3] Segment Performance - The formulation segment's revenue for 2025H1 was 1.127 billion yuan, down 7.2%, with respiratory products showing stable growth [3][4] - The raw materials and intermediates segment saw a revenue decline of 20% in 2025H1, but the Italian subsidiary has resumed growth [3][4] Cost and Profitability Metrics - The gross margin for 2025H1 was 63.16%, an increase of 8.32 percentage points, attributed to a higher proportion of high-margin formulation revenue [3][5] - The report notes an increase in the selling expense ratio to 29.30% and a management expense ratio of 8.80% for 2025H1 [3][5] Research and Development - The company continues to advance its R&D efforts, with several new products approved for production and ongoing clinical trials for innovative drugs [3][4]

Investment Rating - The investment rating for the company is "Accumulate" (maintained) [2] Core Views - The company reported a revenue of 1.869 billion yuan in the first half of 2025, a decrease of 12.56% year-on-year, with a net profit attributable to shareholders of 308 million yuan, down 9.26% [7] - The decline in performance is attributed to falling raw material prices and the impact of centralized procurement on the revenue from generic drugs and existing products [7] - The company has a rich pipeline of new formulations, with four products approved for production and several others in the research phase, indicating potential growth in the future [7] - The forecast for revenue from 2025 to 2027 is 3.836 billion yuan, 4.368 billion yuan, and 5.058 billion yuan respectively, with net profits expected to be 572 million yuan, 660 million yuan, and 776 million yuan [7] Financial Summary - Revenue for 2023 is projected at 4.123 billion yuan, with a revenue growth rate of -5.9% [6] - The net profit for 2023 is estimated at 563 million yuan, with a net profit growth rate of -24.9% [6] - The company’s earnings per share (EPS) for 2025 is expected to be 0.58 yuan, with a price-to-earnings (PE) ratio of 18.6 [6] - Return on equity (ROE) is projected to be 9.2% in 2025, improving to 11.5% by 2027 [6] Market Performance - The company's stock has underperformed compared to the CSI 300 index, with a decline of 23% over the past 12 months [4]

Core Viewpoint - In 2024, the company achieved revenue of 4 billion yuan, a slight year-on-year decline, while net profit attributable to shareholders was significantly impacted by a fine related to sodium dexamethasone sales, with a stable growth in non-recurring net profit [1][2][3] - The impact of centralized procurement on the formulation segment has been largely digested, and new products are continuously being introduced, with expectations for accelerated growth in 2025 [1][4] - Revenue from the raw materials segment declined due to inventory destocking by overseas clients and price decreases, but sales volume remains stable, with a positive outlook for gradual recovery [1][5] Financial Performance - In 2024, the company reported operating revenue of 4.001 billion yuan, a year-on-year decrease of 2.98%, and a net profit attributable to shareholders of 397 million yuan, down 29.46% [2][3] - The non-recurring net profit for 2024 was 549 million yuan, reflecting a year-on-year increase of 2.15% [2][3] - For Q1 2025, the company achieved operating revenue of 1.01 billion yuan, a year-on-year decline of 2.9%, with a net profit of 140 million yuan, down 4.7% [2][3] Formulation Segment - In 2024, the formulation sales revenue reached 2.276 billion yuan, an increase of 8% year-on-year [4] - Key therapeutic areas showed varied performance, with gynecology and family planning sales at 450 million yuan, stable year-on-year; anesthetic muscle relaxants at 160 million yuan, up 55%; respiratory products at 880 million yuan, up 31%; and dermatology products at 230 million yuan, up 19% [4] - The company’s new products are expected to accelerate growth, with significant sales increases in new offerings such as sodium glucosamine injection [4][6] Raw Materials Segment - In 2024, revenue from raw materials and intermediates was 1.55 billion yuan, a year-on-year decline of 13% [5] - The decline was attributed to inventory destocking in the international market and increased competition leading to price drops [5][6] - The company is expected to see a recovery in the raw materials segment as prices stabilize and market share increases [5][6] Expense Analysis - In 2024, the company's sales, management, and R&D expense ratios were 25.84%, 7.74%, and 6.63%, respectively, with slight increases year-on-year [7] - The gross margin improved to 57.49%, up 4.61 percentage points, attributed to the clearing of centralized procurement impacts and operational efficiency [7] - The net profit margin was 10%, significantly impacted by a fine provision of 195 million yuan [7] Future Outlook - The company is expected to achieve stable growth in revenue and profit in 2025, with non-centralized procurement products anticipated to grow steadily [8] - Revenue projections for 2025-2027 are 4.35 billion, 4.81 billion, and 5.48 billion yuan, with year-on-year growth rates of 8.6%, 10.7%, and 13.8% respectively [8]