TAIJI GROUP(600129) 华创证券·2024-10-28 03:23Investment Rating - The report maintains a "Recommend" rating for Taiji Group (600129) with a target price of 29.5 RMB, compared to the current price of 24.4 RMB [1] Core Views - Taiji Group's Q3 2024 revenue was 104.3 billion RMB, with net profit attributable to shareholders at 5.5 billion RMB, a year-on-year decrease of 28.1% [1] - The company's digestive and metabolic drug business revenue declined by 34.3% YoY to 17.7 billion RMB, while the respiratory system drug business remained stable with revenue of 18.8 billion RMB, down only 1.2% YoY [1] - The industrial sector's secondary businesses, including cardiovascular, anti-tumor, and immunomodulatory drugs, faced varying degrees of pressure, with revenue declines ranging from 8.1% to 21.0% YoY [1] - The company's cost structure continues to optimize, with a net profit margin of 1.9% in Q3 2024, and new core management appointments are expected to drive future growth [1] Financial Performance - For 2024, the company's operating income is expected to be 132.78 billion RMB, a decrease of 15.0% YoY, with net profit attributable to shareholders projected at 6.31 billion RMB, down 23.3% YoY [1] - The company's gross margin is expected to remain stable at 48.6% in 2024, with a net profit margin of 4.9% [2] - The company's ROE is forecasted to be 15.4% in 2024, with a debt-to-equity ratio of 120.9% [2] Future Outlook - The company has a rich product pipeline and significant market potential, with marketing optimization and cost control expected to drive sustained growth [1] - The report forecasts a 30% YoY increase in net profit attributable to shareholders in 2025, followed by a 20% increase in 2026 [1] - The company's EPS is expected to grow from 1.13 RMB in 2024 to 1.77 RMB in 2026 [2]