Investment Rating - The report maintains an OUTPERFORM rating for CSPC Pharmaceutical Group with a target price of HKD 5.97, indicating an expected upside from the current price of HKD 4.89 [2]. Core Insights - In FY24, the company achieved revenue of CNY 29.01 billion, a year-on-year increase of 1.7%, with finished drug revenue declining by 7.4% to CNY 23.74 billion due to volume-based procurement (VBP) impacts [3][12]. - The gross profit margin (GPM) was reported at 70.0%, a slight decrease of 0.5 percentage points year-on-year, while net profit attributable to shareholders fell by 26.3% to CNY 4.33 billion [3][12]. - The company is expected to see incremental revenue from innovative drug products exceeding CNY 1.5 billion in FY25, despite challenges in the oncology segment due to price cuts from VBP [4][13]. Financial Performance Summary - Revenue for FY24 was CNY 29.01 billion, with a breakdown showing finished drug sales at CNY 23.74 billion and API and functional food sales at CNY 5.27 billion [3][12]. - R&D expenses increased by 7.5% year-on-year to CNY 5.19 billion, representing 17.9% of total revenue [3][12]. - The company anticipates revenue growth in FY25, with total revenue projected at CNY 31.4 billion, reflecting an 8.2% year-on-year increase [7][17]. Segment Performance - The nervous system segment showed steady growth with sales reaching CNY 9.6 billion, a 6.1% increase year-on-year, driven by the performance of NBP [4][19]. - The oncology segment experienced a significant decline, with sales dropping to CNY 4.4 billion, a decrease of 28.3% year-on-year, primarily due to VBP impacts [4][19]. - The anti-infectives segment reported sales of CNY 4.1 billion, down 3.5% year-on-year, while the cardiovascular segment saw a decline of 14.8% to CNY 2.1 billion [4][19]. Licensing and Future Prospects - CSPC initiated a Phase III clinical trial for SYS6010 (EGFR ADC) in March 2025, with expectations for multiple out-licensing deals in 2025 [6][15]. - The company out-licensed ROR1 ADC to Radiance Biopharma, receiving an upfront payment of USD 15 million, with potential milestone payments of up to USD 1.2 billion [6][16]. - Licensing revenue is anticipated to become a recurring income stream for CSPC as it continues to expand its product offerings [6][16].
石药集团（01093）：2024年业绩：成药收入受集采影响承压，授权收入有望贡献增量