CR Sanjiu(SZ:000999) Wanlian Securities·2024-10-28 09:00Investment Rating - The investment rating for the company is "Buy" (maintained) [2][11]. Core Insights - The company reported a revenue of 19.74 billion yuan (+6.08%) and a net profit of 2.96 billion yuan (+23.19%) for the first three quarters of 2024. In Q3 2024, the revenue was 5.63 billion yuan (up 3.16% year-on-year, down 17.29% quarter-on-quarter), with a net profit of 561 million yuan (up 6.85% year-on-year, down 45.73% quarter-on-quarter) [2][3]. Summary by Sections Business Strategy and Performance - The company is focusing on optimizing its business layout, enhancing brand recognition in the CHC sector, and expanding communication with consumers through various media formats. The prescription drug business is being enriched with a focus on product value and competitiveness, while the national medicine business is solidifying its foundational operations [3]. - The company is also pursuing strategic acquisitions, including a planned acquisition of 28% of Tian Shi Li, which will enhance collaboration in areas such as herbal material cultivation and innovative research [3]. Financial Metrics - For the first three quarters of 2024, the company achieved a gross margin of 52.68% (up 0.89 percentage points year-on-year) and a net margin of 16.44% (up 1.96 percentage points year-on-year). The comprehensive gross margin for Q3 2024 was 50.47% (down 0.29 percentage points year-on-year, down 3.25 percentage points quarter-on-quarter) [4][7]. - The company’s total expenses as a percentage of revenue decreased by 1.66 percentage points year-on-year, with sales, management, and financial expense ratios at 24.07%, 5.44%, and -0.07%, respectively [4]. Earnings Forecast - The earnings forecast for the company has been adjusted, with expected net profits of 3.37 billion yuan, 3.82 billion yuan, and 4.23 billion yuan for 2024, 2025, and 2026, respectively. The corresponding EPS is projected to be 2.62 yuan, 2.97 yuan, and 3.29 yuan [7][9].