HPGC(600664) Xinda Securities·2024-10-25 15:00Investment Rating - The investment rating for Harbin Pharmaceutical Group Co., Ltd. (600664) is "Buy" [1]. Core Views - The company reported a revenue of 12.256 billion yuan for the first three quarters of 2024, representing a year-over-year increase of 7%. The net profit attributable to the parent company was 508 million yuan, up 75% year-over-year, while the net profit excluding non-recurring items reached 470 million yuan, marking a 91% increase year-over-year [1]. - In Q3 2024, the company achieved a revenue of 4.114 billion yuan, a 9% increase year-over-year, with a net profit of 165 million yuan, up 53% year-over-year, and a net profit excluding non-recurring items of 158 million yuan, reflecting a 74% increase year-over-year [1]. - The report highlights a significant improvement in the industrial segment's net profit margin, which has shown a consistent upward trend over the first three quarters of 2024, indicating ongoing optimization of industrial performance [1]. Summary by Sections Financial Performance - For Q3 2024, the industrial segment generated approximately 1.422 billion yuan in revenue, a 15% increase year-over-year, and a net profit of about 112 million yuan, representing a 163% increase year-over-year. The corresponding net profit margin for the industrial segment was approximately 7.87% [1]. - The company forecasts revenues of 16.359 billion yuan, 17.823 billion yuan, and 19.456 billion yuan for 2024, 2025, and 2026, respectively, with year-over-year growth rates of approximately 5.8%, 8.9%, and 9.2% [2]. - The projected net profit attributable to the parent company for the same years is expected to be 610 million yuan, 763 million yuan, and 960 million yuan, with year-over-year growth rates of approximately 54%, 25%, and 25.7% [2]. Profitability Metrics - The gross profit margin is projected to improve from 29.2% in 2024 to 31.3% in 2026, indicating a positive trend in profitability [2]. - The return on equity (ROE) is expected to increase from 11.5% in 2024 to 13.6% in 2026, reflecting enhanced efficiency in generating profits from shareholders' equity [2]. Market Position - The report emphasizes the potential for the company's industrial business to experience a "phoenix rebirth" driven by marketing reforms and product restructuring, which could lead to improved profitability in the future [1].