Jointown(SH:600998)2024-09-04 07:00Investment Rating - The report gives a "Recommended" rating for the company, 九州通 [2][33]. Core Views - 九州通 is positioned as the largest private pharmaceutical distribution enterprise in China, actively implementing the "Three New and Two Transformations" strategy to drive rapid development in innovative businesses such as CSO and new retail [5][33]. - The company reported a revenue of 771.71 billion yuan for H1 2024, a decrease of 2.76% year-on-year, with a net profit of 12.08 billion yuan, down 10.08% [17][20]. - Excluding seasonal factors, the company's revenue showed a slight growth of 0.15% year-on-year, and net profit increased by 9.50% [17][20]. Summary by Sections Financial Performance - In H1 2024, 九州通 achieved a revenue of 771.71 billion yuan, with a net profit of 12.08 billion yuan and an operating cash flow of -32.01 billion yuan [17][20]. - For Q2 2024, the company reported a revenue of 366.99 billion yuan, a decrease of 1.52% year-on-year, and a net profit of 6.70 billion yuan, down 14.31% [17][20]. - The company expects to improve its operating cash flow to positive by year-end through enhanced collection of accounts receivable [17][20]. Business Strategy - 九州通 is advancing its "Three New and Two Transformations" strategy, focusing on new products, new retail, new medical services, digitalization, and real estate securitization [5][20]. - The CSO business generated 98.62 billion yuan in revenue for H1 2024, reflecting a growth of 14.18% [20]. - The new retail segment reported a revenue of 14.56 billion yuan, with a slight increase of 1.02% [20]. Future Projections - The company forecasts revenues of 1,649.66 billion yuan, 1,835.18 billion yuan, and 2,065.60 billion yuan for 2024, 2025, and 2026 respectively, with corresponding net profits of 22.05 billion yuan, 26.88 billion yuan, and 30.65 billion yuan [25][30]. - The projected PE ratios for 2024, 2025, and 2026 are 11, 9, and 8 times respectively [30][33].