Hunan Jiudian Pharmaceutical (SZ:300705) SINOLINK SECURITIES·2024-10-30 01:41Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected price increase of over 15% in the next 6-12 months [3][12]. Core Insights - The company reported a revenue of 2.146 billion RMB for the first three quarters of 2024, representing a year-on-year increase of 13.4%. The net profit attributable to shareholders reached 450 million RMB, up 45.1% year-on-year [1]. - The sales of the company's main product, the Loxoprofen Sodium Gel Patch, have shown significant growth, with a 40.81% increase in sales volume in the first half of 2024. The trend of increasing sales through price adjustments is expected to continue into the third quarter [2]. - The company is expanding its product line in the external analgesic field, with several new products in development and expected to launch soon, which is anticipated to drive future growth [2]. Summary by Sections Performance Review - In Q3 2024, the company achieved a revenue of 780 million RMB, a 15.5% increase year-on-year, and a net profit of 166 million RMB, reflecting a 47.4% increase [1]. Operational Analysis - The company is benefiting from the implementation of centralized procurement, which is optimizing sales expenses. The sales expense ratio decreased by 3.1 percentage points year-on-year to 39.61% in Q3 2024 [2]. - The product pipeline is being enriched with several new external analgesic formulations, which are expected to meet the growing market demand [2]. Profit Forecast and Valuation - The forecasted net profits for 2024, 2025, and 2026 are 514 million RMB, 661 million RMB, and 817 million RMB, respectively, with year-on-year growth rates of 40%, 29%, and 24% [3]. - The earnings per share (EPS) are projected to be 1.05 RMB, 1.35 RMB, and 1.67 RMB for the years 2024, 2025, and 2026, respectively, with corresponding price-to-earnings (PE) ratios of 23, 18, and 15 [3].