Hengrui Pharma(600276) 群益证券·2025-04-01 09:18Investment Rating - The report assigns a "Buy" rating to the company, indicating a potential upside of 15% to 35% [6][11]. Core Insights - The company achieved a revenue of 27.98 billion RMB in 2024, representing a year-over-year growth of 22.6%, and a net profit of 6.34 billion RMB, with a year-over-year increase of 47.3% [8]. - The sales of innovative drugs continue to grow, with a reported income of 13.9 billion RMB from innovative drugs, a 30.6% increase year-over-year [8]. - The company is expected to have 47 innovative products and indications approved for market launch over the next three years, which will drive future revenue growth [8]. Company Performance - The company reported a Q4 revenue of 7.8 billion RMB, a year-over-year increase of 34.3%, and a net profit of 1.72 billion RMB, with a year-over-year increase of 107.2% [8]. - The overall gross margin for 2024 was 86.2%, an increase of 1.6 percentage points year-over-year, driven by high-margin overseas transactions [8]. - The company’s operating expenses ratio decreased to 60.4%, down 3 percentage points year-over-year, primarily due to reductions in sales and management expenses [8]. Financial Projections - The projected net profits for 2025, 2026, and 2027 are 6.98 billion RMB, 8.75 billion RMB, and 10.4 billion RMB, respectively, with year-over-year growth rates of 10.2%, 25.3%, and 18.9% [10]. - The expected earnings per share (EPS) for the same years are 1.09 RMB, 1.37 RMB, and 1.63 RMB, with corresponding price-to-earnings (P/E) ratios of 45X, 36X, and 30X [10].