Joincare(SH:600380) GOLDEN SUN SECURITIES·2024-10-28 00:10Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for its long-term development [1][2]. Core Views - The company's Q3 2024 profit exceeded expectations, driven by effective cost control in sales and R&D, despite a revenue decline due to price negotiations and collective procurement [1]. - The company is accelerating its innovation transformation, focusing on high-potential clinical products and leveraging its strengths in respiratory medicine [1]. Financial Performance - For the first three quarters of 2024, the company reported revenue of 11.899 billion yuan, a year-on-year decrease of 5.95%, while net profit attributable to shareholders was 1.112 billion yuan, an increase of 2.58% [1]. - In Q3 2024 alone, revenue was 3.664 billion yuan, down 6.80% year-on-year, but net profit rose by 24.95% to 335 million yuan [1]. - The sales expense ratio decreased to 24.80%, while the R&D expense ratio was 8.71%, indicating improved cost management [1]. Segment Performance - Chemical preparations generated revenue of 5.879 billion yuan, down 10.55% year-on-year, with hormone products showing a 5.46% increase [1]. - The diagnostics segment saw a revenue increase of 21.03%, while health food revenue surged by 97.67% [1]. Research and Development - The company has submitted for production approval of its new flu drug TG-1000 capsules, expected to be approved by the end of 2025 [1]. - Ongoing clinical trials for several innovative drugs, including a selective Nav1.8 inhibitor and dual-target asthma treatments, highlight the company's commitment to R&D [1]. Profit Forecast and Valuation - The profit forecast for 2024-2026 has been adjusted, with expected net profits of 1.460 billion yuan, 1.568 billion yuan, and 1.776 billion yuan, reflecting growth rates of 1.2%, 7.4%, and 13.3% respectively [1][2]. - The corresponding price-to-earnings ratios are projected to be 14x, 13x, and 12x for the respective years [1].