Source: Securities Times · E Company

Latest price: 38.25
Price fluctuation: -0.75
Price range: -1.92%
Transaction volume: 4481 lots
Transaction amount: 17.06 million
Turnover rate: 0.48%
Price to earnings ratio: 15.9
Total market value: 3.59 billion

On August 31st, Warner Bros. Pharmaceutical (688799. SH) released its 2024 semi annual report, achieving a revenue of 739 million yuan in the first half of the year, a year-on-year increase of 2.34%; Realize a net profit attributable to the parent company of 113 million yuan, a year-on-year increase of 0.52%. The basic earnings per share are 1.20 yuan.
Simultaneously disclosed is the 2023 annual profit distribution plan, in which the company plans to distribute a cash dividend of 9 yuan (including tax) for every 10 shares to all shareholders, totaling 84.42 million yuan (including tax). If this profit distribution plan is approved by the shareholders' meeting, the company will distribute a total of 234.5 million yuan in cash dividends since its listing, accounting for 42.26% of the cumulative net profit attributable to shareholders of the listed company for the years 2021-2023.
Raw materials and formulations are growing synchronously, and the basic stock of enterprises is stable
Currently, the pharmaceutical manufacturing industry is facing a complex environment, with the industry's growth rate continuing to slow down and entering an era of low profits. According to data from the National Bureau of Statistics, from January to July 2024, pharmaceutical manufacturing enterprises above designated size in China achieved a revenue of 1.4144 trillion yuan, a year-on-year decrease of 0.8%; The total profit was 198.68 billion yuan, a year-on-year decrease of 0.8%.
In this macro environment, Warner Bros. Pharmaceutical has followed the trend of industry development, continuously focused on its main business, integrated multiple resources, and achieved stable growth in business performance. Not only did it maintain continuous growth in revenue and profits, but the company's total assets climbed to 2.329 billion yuan, an increase of 6.97% from the end of 2023, reaching a historic high.
As a pharmaceutical production enterprise that integrates raw materials and formulations, Warner Pharmaceuticals recorded growth in both raw materials and formulation products in the first half of this year. Among them, the revenue from formulated products was 555 million yuan, an increase of 0.93% compared to the same period last year; The revenue from raw material pharmaceutical products was 176 million yuan, an increase of 18.69% compared to the same period last year.
The research report released by Fangzheng Securities in August this year believes that the company continues to make efforts in "product clustering" and "integration of raw materials and formulations", and the sales of formulation products are steadily improving through centralized procurement, with stable fundamentals. It is highly recommended.
Multiple incremental varieties open up new growth opportunities
In 2024, Warner Pharmaceuticals obtained a total of 3 drug registration approvals, 3 passed consistency evaluations, and 6 active pharmaceutical ingredient varieties passed review and approval.
As of now, the company has obtained 50 registration approvals for chemical drug preparations and 19 registration approvals for traditional Chinese medicine preparations. It also has 59 varieties of characteristic active pharmaceutical ingredients, of which 47 products have a registration number status of "A". The products cover key treatment areas such as digestion, respiration, and anti infection, forming a distinctive product matrix.
Taking respiratory products as an example. Given the advantages of inhalation products and the high clinical demand for respiratory diseases, Warner Pharmaceuticals has made a deep layout in the field of inhalation products. Acetylcysteine solution for inhalation, salbutamol sulfate solution for inhalation, ipratropium bromide solution for inhalation, levosalbutamol hydrochloride nebulized inhalation solution, and compound ipratropium bromide solution for inhalation together constitute the company's inhalation formulation product matrix. Among them, levosalbutamol hydrochloride nebulized inhalation solution has won the bid for the ninth batch of national centralized drug procurement.
In addition, Warner Bros. Pharmaceutical has over 90 ongoing research projects, covering multiple directions such as innovative drugs, generic drugs, improved new drugs, consistency evaluation, and international registration.
In the research project, ZG-001 and ZY-022 are two innovative drug development projects with high market attention. The former is a new class 1 antidepressant drug that has entered clinical phase I and is expected to become the first rapidly acting and non addictive antidepressant drug in China. The latter is a substitute for endangered animal medicinal materials, which has completed preclinical research and is currently advancing IND. With the release of the "Technical Guidelines for Research on Artificial Products of Endangered Animal Medicinal Materials (Draft for Comments)", Fangzheng Securities evaluates that Warner Pharmaceutical is expected to seize the opportunity and share the long-term growth space of the industrialization of artificial substitution of endangered animal medicinal materials.
Article source: Securities Times · E Company