Jinwu Financial News | Guoyuan International released a Research Report indicating that GRANDPHARMA (00512) has particularly outstanding performance in its key business Sectors, with nuclear medicine anti-tumor and cardiovascular precision interventional diagnosis and treatment Technology products generating revenue of 0.343 billion HKD, a year-on-year increase of 140.8%, primarily due to the rapid increase in clinical demand for the core product Ygantai Yttrium [90Y]. New drugs such as Enzhuorun Bisele and Enmingrun Bisele in the respiratory and critical care Sector, as well as Q10 Coenzyme tablets and Eplerenone tablets in the cardiovascular emergency Sector, have entered a rapid growth phase.
The report stated that since its launch, Ygantai Yttrium [90Y] microspheres have treated over 1,200 patients domestically, with an objective response rate of 62.6% among all patients who could be followed for three months or more, and more than half of the patients showing tumor size reduction, while the disease control rate is about 85%, demonstrating significant treatment effects. The company has five major technology platforms and eight research and development centers, currently working on 141 research projects, of which 49 are Innovative Drugs. The research and development investment in the first half of 2024 was 1.48 billion HKD. The company adheres to the "independent research and development + Global Strategy" and has currently obtained approval for four RDC innovative products to begin clinical trials, with three projects in Phase III clinical research. NOVASYNC, as a domestic substitute for NOVASIGHT, was recently approved for launch, representing the world's innovative intravascular dual-mode imaging system, integrating IVUS and OCT imaging technologies, marking the successful transfer of cardiovascular interventional device technology and comprehensive localization by the company. The Innovative Drug STC3141 for treating sepsis has completed patient enrollment for its Phase II clinical trial in China, showing vast market potential.
The report continued to indicate that the company's innovative products are gradually launching, driving continuous performance growth. It is expected that the company's performance will continue to grow, with projected revenues of 11.35 billion and 12.35 billion, and 13.79 billion HKD for 2024-2026; EPS projected to be 0.60, 0.61, and 0.68 HKD respectively. The development of Innovative Drugs is progressing smoothly, and management efficiency is high. The market potential for RDC is vast, which will continue to drive the company's performance upward and potentially enhance its valuation. The report set a Target Price of 8.28 HKD for the company, corresponding to a PE ratio of 13.8 times for 2024, reflecting a 74.6% upside from the current price. The rating remains "Buy."
