Xin Lang Cai Jing·2025-10-30 06:47Core Viewpoint - Yiling Pharmaceutical achieved a net profit attributable to shareholders of 1 billion yuan in the first three quarters, representing a year-on-year increase of 80.33%, with Q3 net profit reaching 332 million yuan, significantly higher than expected [1] Financial Performance - The company experienced a strong recovery in operating performance in the first three quarters of 2025, indicating a positive outlook for steady growth throughout the year [1] - The expected continuous improvement in gross margin is driven by the decline in traditional Chinese medicine prices and the recovery of gross margins for respiratory products [1] Future Outlook - For 2026, the company is projected to maintain a net profit growth rate that exceeds revenue growth, supported by the recovery of channel inventory to normal levels and profit margin restoration [1] - The unique patent drug development guided by the theory of collateral diseases and the academic marketing promotion model are expected to contribute positively to future performance [1] - The company has been upgraded to a "buy" rating with a target price of 23x PE for 2026 [1]