Lushang Freda Pharmaceutical (SH:600223) Guoyuan Securities·2024-10-30 12:18Investment Rating - The report maintains a "Buy" rating for the company [5][10]. Core Insights - The company's Q3 revenue slightly declined, and profitability decreased, with a total revenue of 2.803 billion yuan for the first three quarters of 2024, down 17.45% year-on-year, and a net profit attributable to the parent company of 171 million yuan, down 28.09% year-on-year [3][4]. - The cosmetics segment is undergoing an adjustment phase, while the pharmaceutical segment shows signs of recovery, with pharmaceutical sales revenue in Q3 reaching 129 million yuan, up 18.96% year-on-year [4]. - The company is focusing on the health sector by divesting its real estate business and leveraging its strong R&D capabilities in cosmetics [5]. Financial Performance Summary - For the first three quarters of 2024, the company achieved a gross margin of 51.81%, a decrease of 3.1 percentage points year-on-year, and a net profit margin of 6.08%, down 1.21 percentage points year-on-year [3]. - The cosmetics segment generated 1.708 billion yuan in revenue from January to September 2024, with a gross margin of 62.32% [4]. - The company expects EPS for 2024-2026 to be 0.28, 0.34, and 0.41 yuan, respectively, corresponding to P/E ratios of 25, 21, and 17 times [5]. Market Data - The company's market capitalization is approximately 7.045 billion yuan, with a circulating market value of 7.045 billion yuan [7]. - The stock price has fluctuated significantly over the past year, with a maximum price of 10.92 yuan and a minimum price of 5.89 yuan [7].