Joincare(SH:600380) KAIYUAN SECURITIES·2024-10-27 15:06Investment Rating - The investment rating for the company is "Buy" (maintained) [1][3]. Core Views - The company's Q3 performance shows a narrowing decline in revenue, with the innovative drug business entering a growth phase [3][5]. - The company is implementing a dual strategy of "innovative drugs + high-barrier complex formulations" to drive growth [5]. - The revenue for the first three quarters of 2024 is reported at 11.899 billion yuan, a year-on-year decrease of 5.95%, while the net profit attributable to shareholders is 1.112 billion yuan, an increase of 2.58% [3][4]. Financial Performance Summary - For Q3 2024, the company reported revenue of 3.664 billion yuan, a decrease of 6.80% year-on-year and a decline of 5.92% quarter-on-quarter [3]. - The gross margin for the first three quarters of 2024 is 63.07%, an increase of 1.30 percentage points, and the net profit margin is 20.45%, an increase of 2.71 percentage points [3]. - The company expects net profits for 2024-2026 to be 1.482 billion, 1.649 billion, and 1.827 billion yuan respectively, with EPS projected at 0.79, 0.88, and 0.98 yuan per share [3][6]. Business Segment Performance - The chemical preparations segment generated revenue of 5.879 billion yuan in the first nine months of 2024, a year-on-year decrease of 10.55%, with respiratory preparations declining by 28.18% [4]. - The health food segment, however, saw significant growth, with revenue increasing by 97.67% to 262 million yuan [4]. - The innovative drug TG-1000 is expected to be approved in the second half of 2025, which is anticipated to contribute significantly to revenue growth [5]. Market Position and Strategy - The company is facing challenges from price reductions due to centralized procurement but is leveraging its advantages in innovative drugs to mitigate these impacts [5]. - The introduction of new products, including the domestic first generic of salmeterol and fluticasone inhalation powder, is expected to enhance the company's performance [5].