CR Sanjiu(000999)2024-11-03 07:19Investment Rating - The investment rating for the company is "Outperform the Market" [3][10]. Core Views - The company has shown a slight increase in revenue for Q3 2024, with a year-on-year growth of 3.16%, while the net profit attributable to shareholders increased by 6.85%. However, the net profit after deducting non-recurring items decreased by 6.83% [4][6]. - The core CHC (Consumer Health Care) business remains stable, with a recovery in the prescription granule business. The company is focusing on enhancing brand influence and product value [6][7]. - The company is in the process of acquiring a 28% stake in Tian Shi Li, which is expected to strengthen its capabilities in the innovative Chinese medicine sector [7][9]. Financial Performance Summary - For the first three quarters of 2024, the company achieved an operating income of 19.74 billion yuan, a year-on-year increase of 6.08%. The net profit attributable to shareholders was 2.96 billion yuan, up 23.19%, while the net profit after non-recurring items was 2.75 billion yuan, an increase of 19.48% [4][6]. - The projected net profits for 2024-2026 are 3.31 billion, 3.94 billion, and 4.57 billion yuan, respectively, with growth rates of 16.11%, 19.02%, and 15.83% [9][11]. Financial Ratios and Estimates - The company’s sales gross margin for the first three quarters of 2024 was 52.7%, an increase of 0.9 percentage points. The sales expense ratio decreased by 1.6 percentage points to 24.1% [6][11]. - The projected earnings per share (EPS) for 2024-2026 are 2.58, 3.07, and 3.55 yuan, respectively [10][11]. - The company maintains a strong return on equity (ROE) forecasted at 15.7% for 2024, increasing to 17.3% by 2026 [11].