Core Viewpoint - The report from Open Source Securities highlights the rapid growth of Enhua Pharmaceutical's neurology business, with clear performance drivers, and maintains a "Buy" rating [1] Group 1: Business Performance - Enhua Pharmaceutical is deepening its product differentiation advantages, achieving stable growth in mature products such as Levofloxacin, Fentanyl, and Remifentanil [1] - The company is accelerating market development for innovative products including TRV130, Oxycodone injection, Sufentanil, Alfentanil, and the new product AnTaiTan® in collaboration with BD [1] Group 2: Research and Development - Enhua Pharmaceutical is increasing its R&D investment, currently having 17 innovative drug projects under research [1] - The company has completed one Phase III clinical trial (NH600001 emulsion injection) and two Phase II clinical trials (NHL35700 tablets, YH1910-Z02 injection) [1] - Two Phase II clinical trials are ongoing (NH102 tablets, YH1910-Z01 nasal spray), and six Phase I clinical trials are in progress (NH130 tablets, NH104 tablets, Protollin nasal spray, NH160030 tablets, NH140068 tablets, NH280105 capsules) [1] - One project has received a clinical trial notification (Citrate Sufentanil injection for new indications), while the remaining projects are in preclinical research stages, indicating significant market potential [1]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's neuro-related business is experiencing rapid growth, and its innovative pipeline is gradually being realized. The performance drivers are clear, and the company is expected to maintain its profit forecast [4][5] Financial Performance Summary - In H1 2025, the company achieved revenue of 3.01 billion yuan (up 8.93% year-on-year, up 2.59% quarter-on-quarter) and a net profit attributable to shareholders of 700 million yuan (up 11.38% year-on-year, up 36.11% quarter-on-quarter). The gross margin was 75.24% (up 2.74 percentage points), and the net margin was 23.26% (up 0.59 percentage points) [3][4] - For Q2 2025, the company reported revenue of 1.499 billion yuan (up 6.64% year-on-year, down 0.77% quarter-on-quarter) and a net profit of 400 million yuan (up 9.94% year-on-year, up 32.95% quarter-on-quarter) [3] Business Segment Performance - In H1 2025, the revenue breakdown by business segment was as follows: Anesthesia products at 1.634 billion yuan (up 7.32%), psychiatric products at 621 million yuan (up 4.29%), neuro products at 166 million yuan (up 107.33%), raw materials at 90 million yuan (down 6.17%), and commercial pharmaceuticals at 394 million yuan (up 9.80%) [4] Future Profit Forecast - The company is expected to achieve net profits attributable to shareholders of 1.294 billion yuan, 1.495 billion yuan, and 1.746 billion yuan for the years 2025, 2026, and 2027, respectively. The expected EPS for these years is 1.27 yuan, 1.47 yuan, and 1.72 yuan per share, with corresponding P/E ratios of 17.5, 15.2, and 13.0 times [4][8] R&D and Innovation Pipeline - The company is focusing on product differentiation and has 17 innovative drug projects in development. It has completed one Phase III clinical trial and two Phase II trials, with several other projects at various stages of clinical research [5]