CR Sanjiu(SZ:000999) Wanlian Securities·2024-08-07 10:00Investment Rating - The investment rating for the company is "Buy" [5][11][14] Core Insights - On August 4, 2024, the company announced plans to acquire a 28% stake in Tian Shi Li Group for a total of 6.212 billion yuan, with the share price set at 14.85 yuan per share. This acquisition will change the controlling shareholder from Tian Shi Li Group to the company itself, with the actual controller becoming China Resources Limited [3][4] - The acquisition is expected to enhance the company's competitive edge in the field of traditional Chinese medicine innovation, leveraging Tian Shi Li's strong marketing network and product matrix in the cardiovascular sector [4][11] Summary by Sections Company Overview - Tian Shi Li primarily operates in the medical channel with a strong marketing advantage, focusing on cardiovascular medications, while the company specializes in self-medication and prescription drugs [4] - In 2023, Tian Shi Li reported revenues of 8.674 billion yuan and a net profit of 1.071 billion yuan, while the company achieved revenues of 24.739 billion yuan and a net profit of 2.853 billion yuan [4] Financial Forecast - The company forecasts revenues of 29.191 billion yuan, 33.509 billion yuan, and 37.284 billion yuan for 2024, 2025, and 2026 respectively, with growth rates of 18.00%, 14.79%, and 11.27% [5][12] - The projected net profits for the same years are 3.390 billion yuan, 3.835 billion yuan, and 4.253 billion yuan, with corresponding EPS of 2.64 yuan, 2.99 yuan, and 3.31 yuan [5][11] Market Position - The company is positioned as a leader in the OTC traditional Chinese medicine sector, with a robust acquisition capability to enhance its product chain [11] - The acquisition is anticipated to drive dual-market growth in both hospital and outpatient settings, aligning with national policies that emphasize the innovation and development of traditional Chinese medicine [11][12]