Jointown(SH:600998) China Post Securities·2024-08-28 04:30Investment Rating - The investment rating for the company is "Buy" and is maintained [1] Core Views - The company has shown steady growth in its performance, with a strategic focus on "Three New and Two Transformations" which includes new products, new retail, new healthcare, digitalization, and real estate securitization [5][7] - The company reported a revenue of 77.171 billion yuan for H1 2024, a decrease of 2.76% year-on-year, but a 0.15% increase when excluding seasonal factors [5] - The net profit attributable to the parent company for H1 2024 was 1.208 billion yuan, down 10.08%, but showed a 9.50% increase year-on-year when adjusted for special factors [5] - The company plans to enhance its accounts receivable collection efforts by the end of the year to ensure positive cash flow matching operational performance [5] Financial Performance - For Q2 2024, the company achieved a net profit of 670 million yuan, a 24.60% increase from Q1 [5] - The gross profit margin for H1 2024 was 7.92%, a decrease of 0.5 percentage points, while the net profit margin was 1.62%, down 0.2 percentage points [5] - The company’s total revenue projections for 2024-2026 are 165.27 billion yuan, 185.20 billion yuan, and 209.44 billion yuan respectively, with net profits of 2.618 billion yuan, 3.015 billion yuan, and 3.491 billion yuan [8][10] Strategic Initiatives - The company has expanded its retail presence, with a total of 24,387 self-operated and franchised pharmacies by July 2024, aiming for 30,000 stores by year-end [7] - The digital healthcare segment has initiated the operation of physical internet hospitals and developed a clinic operation system under the "Jiuxin Clinic" brand [7] - The company is progressing with public REITs and Pre-REITs projects, aiming for successful issuance before October 2024 [7] Valuation Metrics - The current price-to-earnings (P/E) ratio is 8.15, with projected P/E ratios for 2024, 2025, and 2026 at 8.6, 7.5, and 6.5 respectively [1][8] - The company’s asset-liability ratio stands at 68.2% [1]