Sinopharm Accord(000028) 国泰君安·2024-08-29 02:41Investment Rating - The report maintains a "Buy" rating for the company [2][3][4]. Core Views - The company's performance is expected to grow steadily due to external environment improvements and ongoing strategic optimizations, despite facing temporary pressure on distribution and retail growth [2]. - The company achieved revenue of 37.786 billion yuan in H1 2024, a decrease of 1.57%, and a net profit of 743 million yuan, down 10.45% [3]. - The report has adjusted the EPS forecast for 2024-2026 to 2.98, 3.33, and 3.73 yuan, respectively, and has lowered the target price to 30.99 yuan [3]. Financial Summary - In H1 2024, the distribution business generated revenue of 27.079 billion yuan, an increase of 2.11%, while net profit was 5.23 billion yuan, a decrease of 1.48% [3]. - The retail segment, represented by Guoda Pharmacy, reported revenue of 11.2 billion yuan in H1 2024, down 9.3%, with a significant decline in net profit to -14 million yuan [3]. - The company is focusing on improving operational quality and profitability through strategic optimizations in both distribution and retail sectors [3]. Future Outlook - The company anticipates steady growth in retail revenue as sales of cold medicines stabilize and the number of coordinated stores increases [3]. - The financial forecasts indicate a gradual increase in total revenue from 80.003 billion yuan in 2024E to 93.184 billion yuan in 2026E, with net profit expected to rise from 1.656 billion yuan to 2.078 billion yuan over the same period [4][10].