Hengrui Pharma(600276) 民生证券·2024-08-23 00:30Investment Rating - The report maintains a "Recommend" rating for Hengrui Medicine (600276 SH) [1][2] Core Views - Hengrui Medicine achieved significant growth in H1 2024, with revenue reaching 13 601 billion yuan, up 21 78% YoY, and net profit attributable to parent company reaching 3 432 billion yuan, up 48 67% YoY [1] - The company's innovation-driven strategy is paying off, with innovative drug revenue reaching 6 612 billion yuan, up 33% YoY, driven by strong performance of key products like Ruiweilu'an, Daerxili, and Henggelie [1] - Hengrui Medicine continues to strengthen its R&D efforts, with 38 60 billion yuan invested in R&D in H1 2024, up 30 3% YoY, and multiple pipeline products making progress in clinical trials [1] - The company has made significant progress in international cooperation, licensing its GLP-1 products to Hercules for up to 5 725 billion USD in potential milestone payments and sales royalties [1] Financial Performance - Revenue is expected to grow to 27 066 billion yuan in 2024, up 18 6% YoY, with net profit attributable to parent company reaching 6 251 billion yuan, up 45 3% YoY [1][2] - The company's gross margin is expected to remain strong at 85 94% in 2024, with net profit margin improving to 23 09% [5] - Hengrui Medicine's ROE is forecasted to increase to 13 79% in 2024, up from 10 63% in 2023 [5] Pipeline Progress - In H1 2024, Hengrui Medicine had 3 innovative products approved for marketing, 2 NDA applications accepted, 10 products in Phase III trials, 20 in Phase II, and 19 in Phase I [1] - The company's ADC platform has 12 novel ADC molecules in clinical trials, with 3 products in Phase III and 6 indications granted breakthrough therapy designation by CDE [1] Valuation - The company's PE ratio is expected to decline from 65 in 2023 to 45 in 2024, reflecting strong earnings growth [2][5] - Hengrui Medicine's PB ratio is forecasted to decrease from 6 9 in 2023 to 6 2 in 2024 [5]