Sito Bio(300583) 中邮证券·2024-05-07 05:30Investment Rating - The report maintains a "Buy" rating for the company, with an expected relative outperformance of over 20% compared to the benchmark index within the next 6 months [16][22] Core Views - The company's intermediate product prices are stabilizing and recovering, and the API (active pharmaceutical ingredient) sector is entering a harvest period, contributing to revenue and profit growth [4][19] - The construction of the formulation plant is progressing steadily, and the acquisition of Yingu Pharmaceutical is on track, which will help the company expand into the formulation sector and achieve synergies with existing businesses [5][26] - The company's high-margin, high-value-added intermediate products are expected to strengthen its leading position in the steroid intermediate segment [19] - The company's API business is gaining momentum, with several products already approved or under review, including Fluticasone Propionate and Budesonide [19] Financial Performance and Projections - In 2023, the company reported revenue of RMB 1.28 billion (-2.46% YoY) and net profit attributable to the parent company of RMB 45.6 million (+8.67% YoY) [18] - For 2024-2026, the company is projected to achieve revenue of RMB 1.38 billion, RMB 1.51 billion, and RMB 1.67 billion, with YoY growth rates of 7.83%, 9.53%, and 10.72%, respectively [6] - Net profit attributable to the parent company is expected to grow to RMB 59.13 million, RMB 76.35 million, and RMB 89.84 million in 2024-2026, with growth rates of 29.65%, 29.13%, and 17.67%, respectively [6] - EPS is projected to increase from RMB 0.24 in 2023 to RMB 0.31, RMB 0.40, and RMB 0.47 in 2024-2026 [6] - The company's P/E ratio is expected to decline from 61.19 in 2023 to 47.20, 36.55, and 31.06 in 2024-2026, reflecting improved valuation metrics [6] Business Highlights - The company's steroid intermediate business generated revenue of RMB 1.125 billion in 2023, with a gross margin of 23.98%, up 0.49 percentage points YoY [19] - The company has a diversified product portfolio in the intermediate sector, including five core mother nuclei series and over ten high-end intermediates [19] - In the API sector, the company has obtained production licenses for nine products, including Fluticasone Propionate and Budesonide, with several under review [19] - The company's finished drug business achieved revenue of RMB 100 million in 2023, up 27.16% YoY, with two imported drugs, Triamcinolone Acetonide and Calcitonin Salmon, already on the market [26] - The acquisition of Yingu Pharmaceutical, which has three formulation products including a Class 1.1 innovative drug, is expected to enhance the company's formulation capabilities and extend its industrial chain [26] Valuation and Recommendations - The report recommends a "Buy" rating, with a target PE of 47.20x, 36.55x, and 31.06x for 2024-2026, based on the company's growth prospects and improving financial performance [26]