Founder Securities released a research report indicating that Sino Biopharm is entering a harvest period by transforming innovation with four major directions for self-development and BD layout. The company actively explores four major innovative areas: tumors, liver diseases, respiratory diseases and surgery/pain. With rich technical layout and accelerated clinical speed, Sino Biopharm has achieved rapid growth in revenue from innovative products.
The bank expects the company's revenue in 2024-2026 to be RMB 29.727 billion, RMB 33.577 billion, and RMB 38.427 billion, respectively, with a year-on-year growth rate of 12.7%, 12.95%, and 14.44%. The net income attributable to the parent company is RMB 39.11 billion (including one-time income from the sale of Zhengda Qingdao), RMB 3.227 billion, and RMB 4.029 billion, respectively, with a year-on-year growth rate of 67.72%, -17.49%, and 24.85%. The corresponding current stock PE ratios are 21.62, 26.20, and 20.99 times, respectively. Considering that the innovative drug sector's listed product Anlotinib mesylate's combination potential continues to be realized, Shengbaiya begins to gain momentum, and the construction of the pipeline is completed. The generic drug sector has basically cleared the impact of centralized procurement, and the first generic products such as Ivemend and Limaprost still have growth potential. Overseas high-quality symbols are expected to provide income to the company starting in 2025. The bank maintains its bullish view on the company's innovative empowerment and international expansion trend. It initiates coverage with a "strongly recommended" rating.