Jointown(600998) 中邮证券·2024-10-30 01:01Investment Rating - Buy rating maintained for the stock [2] Core Views - The company's performance has shown a clear trend of improvement quarter by quarter, with Q3 revenue, profit, and cash flow turning positive year-on-year [3] - High-margin businesses such as CSO, self-produced pharmaceutical products, and digital logistics solutions drove growth, with CSO revenue up 18% YoY in the first three quarters [4] - The company's REITs project has been accepted, accelerating the implementation of its real estate securitization strategy [4] - The company is expected to see a revaluation as its fundamentals improve, with new product strategies and REITs issuance expected to enhance capital turnover [5] Financial Performance - 2024 Q3 revenue was RMB 36.258 billion (+3.57% YoY), with net profit attributable to shareholders of RMB 489 million (+1.64% YoY) [3] - Excluding the impact of seasonal diseases, the company's revenue and net profit attributable to shareholders increased by 0.70% and 10.16% YoY, respectively, in the first three quarters [3] - Operating cash flow improved significantly in Q3, with a net cash flow from operating activities of RMB 543 million, up 93.36% YoY [4] Business Highlights - CSO business revenue reached RMB 14.119 billion in the first three quarters, up 18% YoY [4] - Self-produced pharmaceutical products and OEM business revenue was RMB 2.092 billion, up 18.42% YoY [4] - Digital logistics and supply chain solutions revenue grew 22.99% YoY to RMB 734 million [4] REITs Strategy - The company submitted its REITs application for pharmaceutical warehousing and logistics infrastructure on September 20, 2024, and received acceptance on September 24, 2024 [4] - The company plans to launch a Pre-REITs project to incubate high-quality pharmaceutical logistics assets, aiming to build a multi-tiered real estate equity capital operation platform [4] Financial Forecasts - Revenue for 2024-2026 is projected to be RMB 165.27 billion, RMB 185.195 billion, and RMB 209.438 billion, respectively [6] - Net profit attributable to shareholders is expected to be RMB 2.618 billion, RMB 3.015 billion, and RMB 3.491 billion for 2024-2026 [6] - The current PE ratio is 10.1x for 2024, 8.8x for 2025, and 7.6x for 2026 [6] Valuation Metrics - The company's PE ratio is 9.55x, with a market capitalization of RMB 26.5 billion [1] - The 52-week high and low prices were RMB 8.54 and RMB 4.39, respectively [1] - The debt-to-asset ratio stands at 68.2% [1]