JUMPCAN(600566) Soochow Securities·2024-10-30 01:00Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - In the first three quarters of 2024, the company achieved revenue of 5.805 billion yuan, a year-on-year decline of 11.19%, and a net profit attributable to shareholders of 1.903 billion yuan, down 2.13%. In Q3 alone, revenue was 1.771 billion yuan, a decrease of 7.18%, but showed a quarter-on-quarter growth of 14.5% [2] - The revenue decline was primarily due to the price drop from centralized procurement of Rabeprazole Sodium enteric-coated capsules. Excluding Rabeprazole, Q3 revenue showed year-on-year growth. Products like Pudilan Anti-inflammatory Oral Liquid and Children's Chiqiao Qingre Granules performed better than in Q2 [2] - The gross margin and net margin improved quarter-on-quarter, with Q3 gross margin at 78.53%, down 3.3 percentage points year-on-year but up 1.22 percentage points from Q2. The net margin for Q3 increased to 31.97%, reflecting strong profitability [3] Financial Forecast and Valuation - The company's net profit forecasts for 2024-2026 have been adjusted downwards to 2.63 billion, 2.98 billion, and 3.31 billion yuan, respectively, with corresponding valuations of 11x, 9x, and 9x [3] - The company is expected to gradually digest high base pressure, with continued growth in second-tier products and a strong sales capability, justifying the "Buy" rating [3] Financial Data - For 2024E, total revenue is projected at 8.464 billion yuan, with a year-on-year decline of 12.33%. The net profit attributable to shareholders is expected to be 2.630 billion yuan, down 6.82% year-on-year [1][8] - The latest diluted EPS is forecasted at 2.85 yuan per share for 2024E, with a P/E ratio of 10.72 [1][9]