Konruns(603590) 长江证券·2025-04-07 11:19Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [9][10]. Core Insights - The company, Kangchen Pharmaceutical, has established itself as a leader in the hemostatic enzyme market with its core product, Suling, which is the first high-purity hemostatic enzyme drug in China. The company is actively expanding its innovative drug pipeline, focusing on oncology and hematological diseases, with promising candidates such as KC1036 for esophageal squamous cell carcinoma and KC1086 for gynecological tumors [3][6][17]. - The traditional business is showing signs of stabilization, with Suling having lifted medical insurance restrictions in 2022, and the company is expected to enter a new growth phase [3][8]. Summary by Sections Company Overview - Kangchen Pharmaceutical, founded in 2003, focuses on the research, production, and sales of innovative drugs. It has a leading position in the hemostatic field with its product Suling and has expanded into oncology and bone metabolism through strategic acquisitions and R&D [6][17]. Innovative Drug Pipeline - The company has developed a differentiated and forward-looking innovative drug pipeline, particularly in oncology, with KC1036 targeting late-stage esophageal squamous cell carcinoma and KC1086 for gynecological tumors. The clinical data for KC1036 shows promising efficacy, with an overall response rate (ORR) of 29.2% and a disease control rate (DCR) of 83.3% [7][28][42]. Financial Projections - Revenue projections for the company are estimated at 831 million yuan, 904 million yuan, and 1.149 billion yuan for the years 2024 to 2026, respectively. The net profit attributable to shareholders is expected to be 42 million yuan, 147 million yuan, and 184 million yuan for the same period, with corresponding earnings per share (EPS) of 0.26 yuan, 0.92 yuan, and 1.15 yuan [9]. Market Potential - The market for esophageal cancer treatment is significant, with a high incidence rate in China. KC1036 is positioned to fill a gap in the treatment landscape, as there are currently no approved small molecule targeted therapies for this indication [28][30][42]. Stability of Core Products - The core products, Suling and Micagis, are expected to provide stable cash flow for the company. Suling's market performance is anticipated to improve following the lifting of insurance restrictions, while Micagis has completed goodwill impairment, further solidifying its financial stability [8][9]. R&D Investment - The company has shown a steady increase in R&D investment, reaching 176.47 million yuan in 2023, which accounts for 19.8% of its revenue, indicating a commitment to sustainable innovation [24][25].