Hunan Jiudian Pharmaceutical (SZ:300705) Ping An Securities·2024-10-29 07:14Investment Rating - The report maintains a "Recommended" rating for the company, indicating a positive outlook for its stock performance in the near term [6][12][13]. Core Insights - The company reported Q3 2024 earnings that exceeded expectations, with revenue of 2.146 billion yuan (+13.36%) and a net profit of 450 million yuan (+45.08%) [5][7]. - The company is expanding its pipeline of external drug delivery products, with several innovative products expected to be approved in the next 1-2 years, enhancing its competitive position [6][7]. - The report anticipates an increase in net profit forecasts for 2024-2026, with projected figures of 5.52 billion yuan, 7.26 billion yuan, and 9.10 billion yuan respectively [6][7]. Financial Performance Summary - For Q3 2024, the company achieved a single-quarter revenue of 780 million yuan (+15.47%) and a net profit of 166 million yuan (+47.38%) [5][7]. - The gross margin for the first three quarters of 2024 was reported at 73.76%, a decrease of 4.23 percentage points, while the net profit margin improved to 20.96%, an increase of 4.58 percentage points [7]. - The company’s revenue projections for the upcoming years are as follows: 3.186 billion yuan in 2024, 3.791 billion yuan in 2025, and 4.449 billion yuan in 2026, reflecting a growth rate of 18.3%, 19.0%, and 17.4% respectively [4][11]. Valuation Metrics - The report indicates a projected EPS of 1.13 yuan for 2024, with a P/E ratio of 22 times based on the current stock price [6][11]. - The company's return on equity (ROE) is expected to increase to 23.4% in 2024, reaching 26.0% by 2026 [4][11].