CR Sanjiu(SZ:000999) Haitong Securities·2024-09-13 08:10Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2] Core Insights - The company reported a revenue of 14.106 billion yuan for the first half of 2024, representing a year-on-year growth of 7.30%, with a net profit attributable to shareholders of 2.398 billion yuan, up 27.77% year-on-year [6] - The self-diagnosis (CHC) business achieved a revenue of 7.773 billion yuan in the first half of 2024, growing 14% year-on-year, with a gross margin of 62.87%, an increase of 5.90 percentage points year-on-year [6] - The prescription drug business faced short-term pressure, with revenue of 2.417 billion yuan, down 13.07% year-on-year, but the formula granule segment showed signs of recovery [6] - The strategic acquisition of Tian Shi Li is expected to enhance the company's innovation and research capabilities in traditional Chinese medicine [6] Financial Summary - The company forecasts net profits of 3.440 billion yuan, 3.870 billion yuan, and 4.275 billion yuan for 2024, 2025, and 2026 respectively, with growth rates of 20.6%, 12.5%, and 10.5% [7] - The estimated earnings per share (EPS) for 2024, 2025, and 2026 are projected to be 2.68 yuan, 3.01 yuan, and 3.33 yuan respectively [7] - The company maintains a gross margin of approximately 53.3% for the upcoming years [29]