Hengrui Pharma(600276) 兴业证券·2024-11-10 04:05Investment Rating - The report maintains a "Buy" rating for the company, with expected EPS of 0.99, 1.09, and 1.28 yuan for 2024, 2025, and 2026 respectively [1][2] Core Views - The company's revenue for the first three quarters of 2024 reached 20.189 billion yuan, a YoY increase of 18.67%, with net profit attributable to shareholders of 4.62 billion yuan, up 32.98% YoY [1] - In Q3 2024, the company achieved revenue of 6.589 billion yuan, a YoY increase of 12.72%, but net profit growth slowed to 1.91% YoY due to increased sales and R&D expenses [1] - The company's gross margin and net margin in Q3 2024 were 85.43% and 18.03% respectively, with sales, management, R&D, and financial expense ratios at 32.95%, 10.63%, 22.94%, and -1.00% [1] - Internationalization is becoming a second growth driver, with several products receiving FDA approval and overseas clinical trials progressing rapidly [1] Financial Performance - The company's total assets stood at 48.338 billion yuan as of Q3 2024, with net assets of 43.768 billion yuan and net asset per share of 6.86 yuan [1] - Operating cash flow for the first three quarters of 2024 was 4.585 billion yuan, a YoY increase of 6.42% [1] - Contract liabilities as of Q3 2024 amounted to 1.277 billion yuan [1] R&D and Innovation - R&D expenses for the first three quarters of 2024 reached 4.549 billion yuan, a YoY increase of 22.10% [1] - The company has 17 innovative drugs on the market as of Q3 2024, with several new drugs in advanced stages of development, including HER2 ADC, EZH2 inhibitor, and GLP1/GIP dual agonist [1] Future Outlook - The company is expected to see significant growth in overseas sales, with milestones from GLP-1 and TSLP products anticipated [1] - Revenue is projected to grow to 27.371 billion, 30.133 billion, and 35.306 billion yuan in 2024, 2025, and 2026 respectively, with corresponding net profit growth of 46.5%, 10.2%, and 17.1% [2] - Gross margin is expected to improve to 86.1%, 86.8%, and 86.8% in 2024, 2025, and 2026 respectively [2]