Jointown(SH:600998) KAIYUAN SECURITIES·2024-10-31 09:32Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's Q3 2024 operating performance has improved, with the "Ten Thousand Store Franchise" initiative achieving its annual target ahead of schedule [1] - The company reported a revenue of 1134.29 billion yuan for Q1-Q3 2024, a year-on-year decrease of 0.82%. However, excluding seasonal factors such as flu and pandemic impacts, revenue growth was 0.70% year-on-year, with net profit increasing by 10.16% [3][4] - The "Three New and Two Transformations" strategy is being steadily advanced, contributing to the company's growth potential [3] Financial Performance Summary - For Q1-Q3 2024, the company achieved a gross margin of 7.96% and a net margin of 1.56% [3] - The total sales revenue from the company's general agency brand promotion business reached 141.19 billion yuan, growing by 18.00% year-on-year [4] - The "Good Medicine Master" franchise business has seen significant progress, with the number of stores reaching 26,703, ahead of the 2024 target, and expected to reach 30,000 by year-end [5] Earnings Forecast - The company maintains its profit forecast for 2024-2026, expecting net profits of 24.45 billion yuan, 27.78 billion yuan, and 31.94 billion yuan respectively, with EPS of 0.48, 0.55, and 0.63 yuan [3][6] - The current stock price corresponds to a PE ratio of 10.6, 9.3, and 8.1 for the years 2024, 2025, and 2026 respectively [3]