Jingu Financial News | Huaan Securities research indicates that CMS (00867) is an open platform enterprise that connects pharmaceutical innovation with commercialization and controls the full lifecycle management of products. In recent years, the company has gradually transformed from a single agency operation model to an innovative drug enterprise. By acquiring innovative drugs through private equity investment, strategic cooperation, or independent research, it obtains exclusive licensing rights including clinical development, production, registration, and sales in China and authorized countries or regions.
The institution pointed out that since 2018, the state has conducted nine batches of centralized volume procurement of pharmaceuticals. The ninth batch of centralized procurement has set new rules for the procurement cycle of winning bidders, removing the restriction on the number of winning enterprises and extending the bidding period uniformly to 4 years, which is beneficial for long-term stability of drug prices. As innovative drugs are successively approved for marketing and enter into large-scale clinical applications, the company's exclusive products such as Xinhuosu and Yihuo maintain market advantages, and the company's overall strength tends to be stable.
The institution expects that from 2024 to 2026, CMS's revenue will be 7.665 billion yuan, 9.009 billion yuan, and 10.888 billion yuan respectively, with year-on-year growth of -4%, 18%, and 21% respectively; It is estimated that from 2024 to 2026, the net income attributable to the parent company will be 1.738 billion yuan, 2.118 billion yuan, and 2.773 billion yuan respectively, with year-on-year growth of -28%, 22%, and 31% respectively. The corresponding valuations are 10X, 8X, 6X. The institution is bullish on the company as a well-established commercialization leader with long-term stability as a commercial platform, and expects performance recovery after the concentrated listing of innovative products. The institution initiates coverage with a "buy" rating.
