Investment Rating - The report maintains an "Outperform" rating for the company [2][16]. Core Views - The company reported a total revenue of RMB 7.47 billion for 2024, a decrease of 6.8% year-on-year, with pharmaceutical sales revenue at RMB 8.62 billion, down 9.0% [12][3]. - The impact of volume-based procurement (VBP) on existing products has largely been digested, with significant sales declines in certain product lines, while innovative products are showing growth [13][4]. - The company has made substantial progress in its innovative drug pipeline, with five products already commercialized and additional assets submitted for NDA approval [14][5]. Financial Performance - Revenue for 2024 was RMB 7.47 billion, down 6.8%, with a gross margin of 72.6%, a decline of 3.6 percentage points due to price cuts from VBP [12][3]. - R&D expenditure increased by 8.9% to RMB 890 million, accounting for 11.9% of total revenue, while selling expenses rose by 6.0% to RMB 2.66 billion [12][3]. - The annual profit was RMB 1.61 billion, down 32.3%, with adjusted net profit at RMB 1.71 billion, down 36.7% year-on-year [12][3]. Sales Breakdown - Cardiovascular and cerebrovascular product line sales were RMB 4.09 billion, down 18.8%, while dermatology and ophthalmology segments showed strong growth [13][4]. - Revenue from three VBP products was RMB 2.69 billion, down 28.8%, indicating that the short-term impact of centralized procurement has largely played out [13][4]. Earnings Forecast and Valuation - Revenue forecasts for 2025 and 2026 have been adjusted to RMB 8.37 billion and RMB 9.44 billion, respectively, reflecting year-on-year growth of 11.5% and 13.3% [15][8]. - The target price is maintained at HKD 9.96 per share, corresponding to a 14x PE for 2025 [16][8].
康哲药业：2024年业绩释放压力，创新转型持续推进-20250407