CR Sanjiu(SZ:000999) ZHESHANG SECURITIES·2024-10-26 12:23Investment Rating - The investment rating for the company is maintained as "Buy" [1][3]. Core Views - The company's Q3 2024 performance met expectations, with revenue of 19.74 billion (up 6.08% YoY) and net profit of 2.96 billion (up 23.19% YoY) [1]. - The core CHC health consumer products business is experiencing good growth, supported by brand reputation and strategic marketing efforts [1]. - The company is actively pursuing strategic mergers and acquisitions, including a controlling stake in Tian Shili and the integration with Kun Pharmaceutical Group, aiming for synergistic growth in traditional Chinese medicine and high-quality development [1]. - The company expects a steady increase in net profit for 2024-2026, with projected figures of 3.43 billion, 3.91 billion, and 4.47 billion respectively, reflecting a growth rate of 20.05%, 14.19%, and 14.30% [1][2]. Financial Summary - For Q3 2024, the company reported a revenue of 5.63 billion (up 3.16% YoY) and a net profit of 561 million (up 6.85% YoY) [1]. - The gross margin for the core business in Q3 2024 was 55.53%, an increase of 1.95 percentage points YoY, attributed to a higher proportion of high-margin products [1]. - The company’s operating expenses increased due to enhanced brand building and R&D investments, with sales, management, and R&D expense ratios at 26.73%, 7.67%, and 4.39% respectively [1]. - The projected revenue for 2024 is 26.31 billion, with a growth rate of 6.37% [2].