Core Viewpoint - The company demonstrates strong confidence in its business operations, particularly in the fields of narcotic drugs and elderly care services, as discussed during a recent offline research meeting with institutional investors. Group 1: Narcotic Drug Development - The company has established a comprehensive product cluster in the narcotic pain relief sector, with a focus on the oxycodone series, which includes both raw materials and formulations [2] - The company is the only domestic pharmaceutical enterprise with an integrated advantage in oxycodone raw material and formulation, supported by 100% self-supply of raw materials and strong cost control [2] - The company disclosed that its oxycodone sustained-release tablets are in the registration review stage, with expected approvals in Q4 2026 for the 40mg version and Q3 2027 for the 10mg version [3] - The company emphasizes a unique self-operated model for promoting oxycodone sustained-release tablets, focusing on academic-driven strategies and digital penetration to enhance market coverage [3] - In the ADHD medication sector, the company utilizes a resin-controlled release microsphere technology to improve dosing precision and enhance efficacy and safety for children [3] Group 2: Elderly Care Business Optimization - The company has made significant progress in optimizing its elderly care business model, focusing on cost reduction and efficiency improvements [4] - The Nalan Garden elderly care project has implemented a three-dimensional pricing model to enhance profit contributions per bed while improving service quality and client structure [4] - The company plans to maintain high occupancy rates in community elderly care services while refining management and service quality [4] - The Taihe Ruiyuan project will launch a "trial stay experience" initiative to address the challenges of high turnover rates among elderly residents, enhancing brand promotion and occupancy conversion [5] - The company aims to adapt to changes in centralized procurement policies by focusing on differentiated products and comprehensive value competition strategies [5]

Investment Rating - The report maintains a "Buy" rating for Renfu Pharmaceutical (600079) [1][7] Core Views - Renfu Pharmaceutical's core business shows stable growth, particularly in the neurology medication sector, while its subsidiaries are achieving significant results in innovation and transformation [1][5][6] - The company reported a revenue of 12.064 billion yuan for the first half of 2025, a year-on-year decrease of 6.20%, primarily due to structural reforms in the pharmaceutical payment sector and ongoing optimization of its business structure [4] - The net profit attributable to shareholders reached 1.155 billion yuan, reflecting a year-on-year increase of 3.92% [4] Summary by Sections Neurology Medication Growth - Yichang Renfu, the largest designated research and production base for anesthetics in Asia, holds over 60% of the domestic market share for anesthetic drugs [5] - In the first half of 2025, Yichang Renfu achieved a revenue of 4.423 billion yuan, a decrease of 1.75%, while net profit increased by 0.49% to 1.432 billion yuan [5] - Revenue from neurology medications reached approximately 3.9 billion yuan, with a year-on-year growth of about 4%, driven by strong sales of products like remifentanil and sufentanil [5] Innovation and Transformation - The company is accelerating its strategic shift from generic drugs to innovative drugs, with R&D investment reaching 743 million yuan in the first half of 2025, a year-on-year increase of 5.32% [6] - A total of 14 new products across 21 specifications have been approved, supporting the development of various product lines, including new neurology and steroid hormone medications [6] Financial Forecast and Projections - The company forecasts revenues of 26.7 billion yuan, 28.2 billion yuan, and 29.9 billion yuan for 2025, 2026, and 2027, respectively, with year-on-year growth rates of 4.87%, 5.85%, and 6.01% [7][9] - Net profit attributable to shareholders is projected to be 2.3 billion yuan, 2.5 billion yuan, and 2.7 billion yuan for the same years, with significant growth expected in 2025 at 70.04% [7][9] - The earnings per share (EPS) are expected to be 1.39 yuan, 1.50 yuan, and 1.63 yuan for 2025, 2026, and 2027, respectively, with corresponding price-to-earnings (PE) ratios of 15, 14, and 13 times [7][9]

Core Viewpoint - The approval of the drug registration certificate for Oxycodone Hydrochloride Tablets by the National Medical Products Administration marks a significant milestone for the company, enabling it to sell the product in the Chinese market [1] Group 1: Company Developments - The company's subsidiary, Yichang Renfu Pharmaceutical Co., Ltd., has received the drug registration certificate for Oxycodone Hydrochloride Tablets, which are indicated for the relief of moderate to severe cancer pain [1] - The approved specifications for the Oxycodone Hydrochloride Tablets are 15mg and 30mg [1] - The company submitted the marketing authorization application in January 2024, which has been accepted, and the total R&D investment for this project has reached approximately 11 million RMB [1] Group 2: Industry Context - The approval of Oxycodone Hydrochloride Tablets positions the company to compete in the pain management market, particularly for cancer patients [1] - Beijing Huasu Pharmaceutical Co., Ltd. received a drug registration certificate for its 5mg Oxycodone Hydrochloride Tablets in May 2024, indicating a competitive landscape in the market [1]