HUADONG MEDICINE(000963) 长江证券·2024-11-11 09:05Investment Rating - The investment rating for Huadong Medicine is "Buy" and is maintained [6][10]. Core Views - The report highlights that the company's total revenue for the third quarter of 2024 reached 10.513 billion yuan, representing a year-on-year growth of 5.03%. The net profit attributable to shareholders was 866 million yuan, up 14.71% year-on-year, while the net profit excluding non-recurring gains and losses was 857 million yuan, reflecting a growth of 16.93% [4][6]. - The report emphasizes the company's strong pipeline in the weight management sector, particularly with the oral small molecule GLP-1 receptor agonist HDM1002, which has completed enrollment for its Phase II clinical study and is expected to report top-line results in October 2024 [6][7]. - The report notes that while the domestic medical aesthetics market is experiencing a slowdown, the company is accelerating the registration of its core medical aesthetic products in overseas markets [6][8]. Summary by Sections Financial Performance - For the first nine months of 2024, the pharmaceutical industrial segment achieved a total revenue of 9.941 billion yuan, a year-on-year increase of 10.53%, with a net profit of 2.14 billion yuan, up 14.49% [7]. - The medical aesthetics segment reported a total revenue of 1.909 billion yuan for the first nine months, a growth of 1.90% year-on-year, but the subsidiary Sinclair saw a revenue decline of 20.30% due to global economic challenges [8]. Product Development - The company has a robust pipeline in the endocrine field with multiple weight management products, including the IND application for semaglutide injection, which was approved at the end of September 2024 [6][7]. - EPS forecasts for 2024, 2025, and 2026 are projected to be 1.88 yuan, 2.20 yuan, and 2.61 yuan respectively [6][10]. Market Dynamics - The report indicates that the overseas medical aesthetics market is under pressure, while the domestic market is experiencing a phase of temporary slowdown [8]. - The company is actively expanding its market presence through its subsidiary Sinclair, focusing on global sales of aesthetic injection fillers and photonic devices [8].