HUADONG MEDICINE(000963) 中国银河·2024-08-18 15:30Investment Rating - The report maintains a "Recommend" rating for the company [3][4]. Core Viewpoints - The company reported Q2 2024 results that exceeded expectations, with a revenue of 20.965 billion yuan, a year-on-year increase of 2.84%, and a net profit attributable to shareholders of 1.696 billion yuan, up 18.29% year-on-year [2]. - The pharmaceutical industrial segment showed robust growth, achieving a revenue of 6.698 billion yuan in H1 2024, a 10.63% increase year-on-year, while the medical aesthetics business faced challenges due to global economic conditions [2][3]. - The company has a strong pipeline with 129 projects under research, including 86 innovative products and biosimilars, and has increased R&D investment by 10.34% to 1.110 billion yuan in H1 2024 [3][5]. Financial Performance Summary - For H1 2024, the company achieved a revenue of 20.965 billion yuan, with a net profit of 1.696 billion yuan, and a non-recurring net profit of 1.625 billion yuan, reflecting growth rates of 2.84%, 18.29%, and 13.85% respectively [2]. - The forecast for net profit attributable to shareholders for 2024-2026 is projected at 3.429 billion yuan, 3.995 billion yuan, and 4.606 billion yuan, with year-on-year growth rates of 20.78%, 16.52%, and 15.29% respectively [5][6]. - The company’s earnings per share (EPS) are expected to be 1.95 yuan, 2.28 yuan, and 2.63 yuan for 2024-2026, with corresponding price-to-earnings (PE) ratios of 15, 13, and 11 [5][6].