Jinwu Financial News | Zheshang Securities released a research report that Xiansheng Pharmaceutical (02096) achieved revenue of 6.608 billion yuan (RMB, same unit) in 2023, up 4.5% year on year, in line with market expectations; achieved net profit of 715 million yuan, down 23.2% year on year, which is mainly due to the large investment income base in 2022. By business, there is a clear trend that the company's share of innovative drug revenue will continue to rise in 2023. We are optimistic about the company's innovative drug sector revenue in 2024-2025.
According to the bank, the company's gross margin in 2023 was 75.4%, down 3.6% year on year, mainly due to changes in the sales structure of the innovative drug product portfolio. It is expected that as the production volume of new products expands, the company's gross margin will rise. At the same time, the bank is optimistic about the trend of increasing the company's profitability as the company's expense ratio continues to be optimized.
The bank's 2024-2025 performance forecast. The company's EPS is expected to be 0.37, 0.47, and 0.57 yuan/share in 2024-2026 (the previous forecast is 0.66 and 0.75 yuan for 2024-2025), and the closing price on April 18, 2024 is 13 times PE in 2024. The bank is still optimistic that the company's innovative drug stock+incremental variety will continue to drive rapid growth in 2024-2026 performance, so it maintains a “buy” rating.