Investment Rating - The report maintains a "Recommended" investment rating for Jingxin Pharmaceutical (002020.SZ) [1][8][10] Core Views - The company is expected to see continued growth in its innovative pipeline, particularly with the ongoing expansion of its first-class innovative drug, Didasinib [7][8] - The company reported a revenue of 2.017 billion yuan for H1 2025, a year-on-year decrease of 6.20%, while the net profit attributable to shareholders was 388 million yuan, down 3.54% year-on-year [4][7] - The report anticipates that the company will achieve revenues of 4.724 billion yuan, 5.357 billion yuan, and 6.092 billion yuan for the years 2025, 2026, and 2027, respectively, with year-on-year growth rates of 13.6%, 13.4%, and 13.7% [6][8] Financial Performance - In H1 2025, the company's revenue from finished drugs was 1.175 billion yuan, down 9.68% year-on-year, while revenue from medical devices increased by 12.01% to 349 million yuan [7] - The gross margin for H1 2025 was 49.57%, a decrease of 2.00 percentage points year-on-year, while the net margin increased by 0.57 percentage points to 19.45% [7] - The company expects to maintain its profit forecasts, projecting net profits of 829 million yuan, 947 million yuan, and 1.102 billion yuan for 2025, 2026, and 2027, respectively, with year-on-year growth rates of 16.4%, 14.3%, and 16.4% [8] Innovative Pipeline - The innovative drug Didasinib has seen significant growth, generating 55 million yuan in revenue in H1 2025, with over 1,500 hospitals now covered [7][8] - The company has a rich pipeline of drugs under development, including a first-class innovative drug for schizophrenia that has completed Phase II clinical trials and a new drug for cardiovascular diseases that is progressing through Phase I trials [7][8]

Group 1: Company Overview - In the first half of 2025, the company achieved revenue of 2.017 billion CNY, a year-on-year decrease of 6.20% [3] - Finished drug revenue was 1.175 billion CNY, down 9.68% year-on-year [3] - Raw material drug revenue was 453 million CNY, a decline of 9.59% year-on-year [3] - Medical device revenue reached 349 million CNY, showing a growth of 12.01% year-on-year [3] - The net profit attributable to shareholders was 388 million CNY, down 3.54% year-on-year [3] - The net profit after deducting non-recurring gains and losses was 360 million CNY, an increase of 7.78% year-on-year [3] Group 2: Sales and Marketing Strategies - The company expanded the commercial layout of its product 京诺宁® (Didasyn) with over 400 new key medical institutions gaining access, totaling over 1,500 hospitals [3] - Revenue from Didasyn reached 55 million CNY in the first half of 2025 [3] - The company aims to enhance patient access to medications through a three-tier terminal network system [3] Group 3: Research and Development Progress - In the psychiatric field, the innovative drug JX11502 capsule completed Phase II clinical trials [4] - The NDA for the drug targeting the same indication was submitted to the National Medical Products Administration [4] - In the cardiovascular field, the Phase I clinical trial for a new LP(a) mechanism lipid-lowering drug is progressing [4] - The NDA for a drug treating high cholesterol was also submitted [4] - A modified traditional Chinese medicine for ulcerative colitis completed Phase II clinical trials [4] Group 4: Financial Management and Cost Control - Sales expenses amounted to 311 million CNY, with a sales expense ratio decrease of 2.41 percentage points [4] - The company has been reducing sales expenses for several years through improved sales efficiency and internal structure adjustments [4] - As of July 31, 2025, the company repurchased shares worth 610 million CNY, nearing the repurchase limit [4] Group 5: Business Segment Performance - The medical device segment achieved revenue of 349 million CNY, a year-on-year increase of 12.01% [4] - The raw material drug segment reported revenue of 453 million CNY, down 9.59% year-on-year, due to a client inventory destocking cycle [5] - The company is focusing on enhancing its supply chain and expanding its international market presence to stabilize growth in the raw material drug segment [5]