ZZPZH(600436) 高盛证券·2024-10-27 16:26Investment Rating - The report maintains a "Buy" rating for Pien Tze Huang (600436.SS) with a 12-month price target of Rmb280, indicating an upside potential of 21.5% from the current price of Rmb230.54 [2][8][7]. Core Insights - Pien Tze Huang reported 3Q24 earnings of Rmb965 million, reflecting a year-on-year increase of 12.0% and a 6.3% beat against Goldman Sachs estimates, attributed to better gross profit margins and lower-than-expected expenses [1][2]. - The revenue for 3Q24 was Rmb2,800 million, marking a 9.6% increase year-on-year and a 2.9% increase compared to Goldman Sachs estimates, driven by strong sales growth in hepatic disease medication, which saw a 25.3% year-on-year increase [2][6]. - The report anticipates a healthy compound annual growth rate (CAGR) in sales and earnings per share (EPS) between FY23 and FY26, supported by ongoing production growth and pricing hikes amid increasing demand [6][7]. Financial Estimates - Earnings estimates for Pien Tze Huang have been revised upwards by 2.8% for 2024E, with net profit expected to reach Rmb3,068 million, a 2.8% increase from previous estimates [4][5]. - Revenue projections for 2024E have been adjusted to Rmb11,135 million, reflecting a 2.3% increase from prior estimates, with EBIT expected to be Rmb3,613 million, a 2.9% increase [4][5]. - The report highlights a stable gross profit margin (GPM) of 46.9% for 3Q24, slightly improved from 46.6% in previous estimates, despite pressures from rising cow bezoar costs [1][2].