Ge Long Hui·2025-10-30 20:17Core Viewpoint - The company reported its Q1 2025 performance, which met expectations with a revenue increase and net profit growth, indicating stable financial health and operational efficiency [1][2]. Financial Performance - For Q1 2025, the company achieved a revenue of 61.606 billion yuan, a year-on-year increase of 4.31% - The net profit attributable to shareholders was 3.310 billion yuan, corresponding to an earnings per share of 2.04 yuan, reflecting a year-on-year increase of 4.78% [1]. - In Q1 2025, the gross profit margin was 17.6%, a decrease of 0.1 percentage points year-on-year, while the sales expense ratio was 7.0%, down 0.2 percentage points year-on-year [1]. Development Trends - The company is actively restructuring its product lines, focusing on specialized pharmaceutical matrices including pediatrics, cough and phlegm relief, reproductive health, and antibiotics [2]. - The company is enhancing its marketing strategies through product positioning, pricing management, and promotional planning [2]. - The company has ongoing innovative drug projects in both chemical and traditional Chinese medicine, with several products entering clinical phases [2]. Market Expansion - The company is expanding its overseas market presence, particularly with the "WALOVI+王老吉" brand in countries like Saudi Arabia and Malaysia, and has formed strategic partnerships with various international firms [2]. Profit Forecast and Valuation - The profit forecasts for 2025 and 2026 remain unchanged at 3.120 billion yuan and 3.431 billion yuan, respectively [2]. - The A-share price corresponds to a P/E ratio of 13.6 times for 2025 and 12.4 times for 2026, while the H-share price corresponds to 8.6 times and 7.7 times, respectively [3]. - The target price for A-shares is maintained at 34.0 yuan, indicating a potential upside of 30.2% from the current price, while the target price for H-shares is 23.0 HKD, with a potential upside of 27.6% [3].