Fangsheng Pharmaceutical(SH:603998) KAIYUAN SECURITIES·2024-10-29 08:39Investment Rating - The investment rating for the company is "Buy" (maintained) [2][11]. Core Views - The company achieved a revenue of 1.348 billion yuan, representing a year-on-year increase of 10.95%. The net profit attributable to the parent company surged by 60.66% to 0.91 billion yuan, while the non-recurring net profit increased by 33.87% to 0.163 billion yuan [1][2]. - The gross margin for the first three quarters of 2024 was 71.1%, with a net margin of 16.87%, an increase of 5.30 percentage points year-on-year [1][5]. - The company has raised its profit forecast for 2024-2026, expecting net profits of 0.279 billion, 0.301 billion, and 0.369 billion yuan respectively, with corresponding EPS of 0.63, 0.69, and 0.84 yuan [1][5]. Revenue Breakdown - The cardiovascular drugs segment generated revenue of 0.381 billion yuan, up 41.28%. The musculoskeletal system drugs brought in 0.298 billion yuan, an increase of 11.03%. The respiratory system drugs achieved 0.183 billion yuan, up 17.11% [3]. - The pediatric cough syrup has been covered by over 1,500 public medical institutions, generating approximately 60 million yuan in sales, a growth of over 130%. The Xuanqi Jianguo tablets reached over 1,000 institutions with sales of about 86 million yuan, a growth of over 340% [4]. Financial Forecasts - The company forecasts revenues of 1.774 billion yuan for 2024, with a year-on-year growth of 8.9%. The net profit is expected to be 0.279 billion yuan, reflecting a 49.2% increase [5][7]. - The projected gross margin for 2024 is 71.1%, with a net margin of 15.7% [5][8]. Market Performance - The current stock price is 13.11 yuan, with a market capitalization of 5.757 billion yuan. The stock has a P/E ratio of 20.6 for 2024 [2][5].