Sito Bio(300583) 中邮证券·2024-03-10 16:00Investment Rating - The report assigns a "Buy" rating to the company, indicating an expected stock price increase of over 20% relative to the benchmark index within the next six months [14]. Core Insights - The company is positioned as a leading player in the steroid raw material drug sector, with a strong focus on expanding its integrated supply chain from intermediates to raw materials and formulations. The acquisition of 60% of Yingu Pharmaceutical is expected to enhance its domestic formulation platform and create significant synergies [11][25]. - The innovative drug, Phenylquaternary Ammonium Bromide nasal spray, is anticipated to capture a substantial market share in the respiratory field, supported by its inclusion in the national medical insurance directory [7][71]. - The inhaled solution of Ammonium Bromide is expected to replace injectable forms effectively, contributing to market growth as it enters the national medical insurance in January 2024 [7][66]. Summary by Sections 1. Company Overview - The company has established itself as a leader in the steroid raw material drug sector, leveraging gene engineering and synthetic biology technologies for production. It has expanded its product offerings through both organic growth and acquisitions [29][45]. 2. Market Potential - The report highlights the significant market potential for Phenylquaternary Ammonium Bromide, with a projected increase in penetration rates from 0.18% in 2023 to 0.90% by 2025, leading to revenue growth from 25 million to 122 million yuan [5][10]. - The global market for respiratory drugs is expected to grow from approximately 44.3 billion USD in 2022 to 64.6 billion USD by 2029, with a CAGR of 5.6% [66]. 3. Financial Projections - The company is projected to achieve revenues of 1.34 billion, 1.71 billion, and 2.03 billion yuan for the years 2023, 2024, and 2025, respectively, with corresponding net profits of 47 million, 93 million, and 128 million yuan [11][26]. - The earnings per share (EPS) are expected to increase from 0.25 yuan in 2023 to 0.68 yuan by 2025, reflecting a strong growth trajectory [11][26]. 4. Strategic Acquisitions - The acquisition of Yingu Pharmaceutical is expected to enhance the company's capabilities in the formulation sector, with three products already launched and additional growth anticipated from the integration of Yingu's operations [25][71]. - The company has also made strategic moves to enter overseas markets through the acquisition of Lisapharma, which strengthens its international presence and product offerings [67][68].