Fangsheng Pharmaceutical(603998) 东吴证券·2024-04-23 07:08Investment Rating - The report maintains a "Buy" rating for the company [7][8]. Core Insights - The company's revenue for 2023 was 1.629 billion yuan, a decrease of 9.12% year-on-year, while the net profit attributable to shareholders was 186.82 million yuan, down 34.64% [7][8]. - Excluding the impact of Baijun Medical no longer being included in the consolidated financial statements, the company's revenue remained stable in 2023 [2]. - The company has seen strong performance in its respiratory and pediatric medication segments, with notable revenue growth in specific products [2]. Financial Performance Summary - Total revenue (million yuan): - 2022A: 1,792 - 2023A: 1,629 - 2024E: 1,913 - 2025E: 2,367 - 2026E: 2,901 - Year-on-year growth rates: - 2023A: -9.12% - 2024E: 17.44% - 2025E: 23.77% - 2026E: 22.56% [8][20]. - Net profit (million yuan): - 2022A: 285.85 - 2023A: 186.82 - 2024E: 242.17 - 2025E: 311.63 - 2026E: 396.33 - Year-on-year growth rates for net profit: - 2023A: -34.64% - 2024E: 29.62% - 2025E: 28.68% - 2026E: 27.18% [8][20]. Product Performance Summary - The company’s strategic products are steadily increasing in volume, with significant revenue contributions from respiratory and pediatric medications [2]. - Specific product highlights include: - Tengwangge Pharmaceutical: Revenue of 180 million yuan (+28%) - Pediatric medication: Revenue of 188 million yuan (+24.74%) with improved gross margin [2]. - The company’s industrial gross margin improved to 76.59% in Q1 2024, up 5.64 percentage points year-on-year [2]. Research and Development - The company increased its R&D investment by 53% in 2023, with a 48% increase in Q1 2024 [17]. - The company has a rich pipeline of products in various stages of clinical trials, indicating a strong focus on innovation [17].