Guobang Pharma (SH:605507) ZHESHANG SECURITIES·2024-10-23 08:03Investment Rating - The investment rating for the company is "Accumulate" (maintained) [4] Core Views - The company has achieved rapid growth in revenue and profit in Q3 2024, leveraging its scale manufacturing advantages and enhancing market share of core products, with new product commercialization contributing to growth [2][5] - The financial performance for the first three quarters of 2024 shows revenue of 4.418 billion yuan, a year-on-year increase of 9.00%, and a net profit attributable to shareholders of 579 million yuan, up 18.36% year-on-year [2][5] - The pharmaceutical segment continues to grow steadily, with H1 2024 revenue of 2.036 billion yuan, a year-on-year increase of 9.46% [2][5] - The company is entering a capacity release phase, with significant ongoing projects nearing completion, which is expected to enhance its scale manufacturing advantages [2][5] - The company has maintained good cost control, with an increase in gross margin and net margin year-on-year [2][5] Financial Performance Summary - For Q3 2024, the company reported revenue of 1.526 billion yuan, a year-on-year increase of 22.68%, and a net profit of 174 million yuan, up 32.43% year-on-year [2][5] - The gross margin for the first three quarters of 2024 was 26.17%, an increase of 1.52 percentage points year-on-year, while the net profit margin was 13.10%, up 1.07 percentage points year-on-year [2][5] - The operating cash flow for Q1-Q3 2024 was 33 million yuan, a year-on-year increase of 201.75% [5] Growth Potential - The company is well-positioned in the veterinary medicine sector, with a complete product lineup and strong brand advantages, which are expected to contribute positively to its performance as market conditions improve [2][5] - The company anticipates continued growth in its pharmaceutical segment, driven by stable pricing and increased market share of key products [2][5] Earnings Forecast and Valuation - The company’s EPS is projected to be 1.40 yuan in 2024, 1.76 yuan in 2025, and 2.18 yuan in 2026, with a PE ratio of 15 times based on the closing price on October 22, 2024 [5][7]