Hengrui Pharma(600276) 东方证券·2024-08-22 00:40Investment Rating - The report maintains a Buy rating for the company with a target price of 52.20 yuan, based on a 2024 P/E ratio of 58x [2][4] Core Views - The company achieved 13.601 billion yuan in revenue for H1 2024, a 21.78% YoY increase, with net profit attributable to shareholders reaching 3.432 billion yuan, up 48.67% YoY [1] - Revenue from innovative drugs accounted for 48.6% of total revenue in H1 2024, up from 40.5% in 2022, driven by new drug approvals and expanded indications [1] - Overseas licensing contributed significantly, with 160 million euros in upfront payments from Merck Healthcare and a GLP-1 product portfolio licensing deal with Hercules, expected to boost future earnings [1] Financial Performance - Q2 2024 revenue reached 7.603 billion yuan, a 33.95% YoY increase, with net profit attributable to shareholders surging 92.94% YoY to 2.063 billion yuan [1] - Revenue breakdown by segment: Oncology 7.14 billion yuan, Anesthesia 1.82 billion yuan, Contrast Agents 1.38 billion yuan, and Other Businesses 3.26 billion yuan [1] - The company's EPS is projected to grow from 0.90 yuan in 2024 to 1.21 yuan in 2026, with revenue expected to increase from 26.404 billion yuan in 2024 to 36.053 billion yuan in 2026 [2][7] Innovation and Global Expansion - Three new innovative drugs were approved in H1 2024, including Fulvestrant Tigecycline, Fluzoparib, and Proline Henggeliezin for new indications [1] - The company has three ADC drugs granted FDA Fast Track designation, indicating strong potential for global market expansion [1] - Overseas approvals for Bupivacaine and Tacrolimus in the US further solidify the company's international presence [1] Valuation and Market Performance - The company's P/E ratio is expected to decline from 47.2x in 2024 to 35.0x in 2026, reflecting strong earnings growth [7] - The stock's 52-week high/low is 49.49 yuan/35.34 yuan, with a current price of 42.31 yuan as of August 21, 2024 [4] - The company's market capitalization stands at 269.896 billion yuan, with a total of 637.9 million shares outstanding [4]