Jointown(SH:600998) ZHESHANG SECURITIES·2024-08-07 08:23Investment Rating - The report assigns a "Buy" rating for the company, indicating a positive outlook for investment [4][58]. Core Viewpoints - The report emphasizes that the improvement trend in ROE (Return on Equity) is clear, supported by innovative business expansion and the upcoming issuance of REITs (Real Estate Investment Trusts), which are expected to enhance the company's asset structure and business model [12][48]. The company is characterized by high dividends and low valuation, making it an attractive investment opportunity [13][58]. Summary by Sections 1. Company Overview - The company has a significant presence in the outpatient market, with approximately 74% of its sales coming from this segment, distinguishing it as a leading private company among the top four pharmaceutical distribution companies in China [13][58]. - The company has maintained a cash dividend rate of 45% for two consecutive years, indicating strong cash flow and a commitment to returning value to shareholders [13][58]. 2. Distribution Business - The "Good Pharmacist Ten Thousand Store Franchise" initiative has shown strong growth, with franchise store purchases from the company reaching 3.48 billion yuan in 2023, a year-on-year increase of 83.25% [2][31]. - The company plans to expand its franchise store count to over 30,000 by 2025, driven by increasing store numbers and procurement ratios [2][31]. 3. CSO Business - The company's CSO (Contract Sales Organization) business has demonstrated strong growth, with a focus on enhancing channel management capabilities and expanding product offerings [3][41]. - The company plans to introduce over 20 new products in 2024, indicating a robust pipeline for future growth [3][41]. 4. REITs and Financing - The company is set to become the first pharmaceutical logistics company in China to issue REITs, which is expected to provide substantial capital inflow and improve its financial structure [48][49]. - The anticipated REITs issuance could unlock approximately 280 billion yuan in cash, facilitating accelerated growth in high-ROE business segments [49][50]. 5. Financial Projections - Revenue forecasts for 2024-2026 are projected at 161.8 billion, 175.8 billion, and 191.9 billion yuan, respectively, with corresponding growth rates of 7.78%, 8.65%, and 9.12% [58][51]. - The net profit estimates for the same period are 2.427 billion, 2.728 billion, and 3.064 billion yuan, reflecting growth rates of 11.64%, 12.40%, and 12.31% [58][51].