康哲药业：业绩环比上升，创新药将放量再造新康哲

Investment Rating - The report maintains a "Buy" rating with a target price of HKD 10.38, indicating a potential upside of 56% from the current price of HKD 6.65 [1][6][16]. Core Insights - The company has shown a quarter-on-quarter increase in performance, with five innovative drugs starting to gain traction. In the first half of 2024, the company achieved revenue of RMB 4.288 billion, a year-on-year decrease of 22.6% but a quarter-on-quarter increase of 8.9%. Net profit was RMB 903 million, down 52.8% year-on-year but up significantly by 92.8% quarter-on-quarter [4][9][10]. - The innovative drug pipeline is robust, with 30 drugs in global development, including the rapid advancement of Lucofenib, which has a large market potential. The company is also actively pursuing registration and commercialization in Southeast Asia, aiming to establish a strong foothold in the region [5][11][15]. Summary by Sections Financial Performance - In the first half of 2024, the company reported revenue of RMB 4.288 billion, a year-on-year decline of 22.6% but an increase of 8.9% from the previous quarter. The net profit was RMB 903 million, reflecting a year-on-year decrease of 52.8% but a quarter-on-quarter increase of 92.8% [4][9][10]. - The company expects revenue for 2024-2026 to be RMB 79.25 billion, RMB 89.49 billion, and RMB 108.85 billion, respectively, with EPS projected at 0.71, 0.80, and 1.01 [6][16]. Innovative Drug Pipeline - The company has launched five innovative drugs in the past year, including three that have been included in the national medical insurance directory. These drugs are expected to contribute RMB 400-500 million in revenue in 2024 [4][10]. - The company is advancing Lucofenib, which has a significant market opportunity, particularly in treating vitiligo and atopic dermatitis, with a potential market size of RMB 5 billion [5][12]. Market Expansion - The company is focusing on expanding its presence in Southeast Asia, leveraging the region's growing demand for pharmaceuticals. It aims to establish a management center in Singapore and expand into countries like Indonesia, the Philippines, and Vietnam [15][16].