JZJ(SH:605266) Huachuang Securities·2024-11-03 13:49Investment Rating - The report maintains a "Recommended" rating for the company with a target price of 30.3 yuan, compared to the current price of 23.31 yuan [1]. Core Views - The company's revenue for the first three quarters of 2024 reached 6.74 billion yuan, with a year-on-year increase of 3.6%. However, the net profit attributable to the parent company and the net profit after deducting non-recurring gains and losses saw significant declines of 63.8% and 64.3% respectively, primarily due to the ongoing implementation of medical reform policies [1][2]. - The company has been adjusting its operational strategies to mitigate the impact of policy changes, focusing on enhancing non-medical insurance revenue through differentiated competition and professional services [2]. - Store expansion has slowed down, with a net increase of 385 stores in the first nine months of 2024, bringing the total to 5,501 stores, a 7.5% increase from the beginning of the year [2]. - The gross profit margin has come under pressure, with a decline of 1.2 percentage points to 36.8% in Q3 2024, while the net profit margin decreased by 3.9 percentage points to 1.7% [2]. Financial Summary - The company forecasts net profits attributable to the parent company for 2024-2026 to be 210 million, 237 million, and 268 million yuan, reflecting a year-on-year change of -49%, +13%, and +13% respectively [2][3]. - The projected revenue for 2024 is 9.35 billion yuan, with a growth rate of 3.0%, and is expected to reach 10.28 billion yuan in 2025, growing by 10.0% [3]. - The company's total assets are projected to increase from 9.949 billion yuan in 2023 to 11.304 billion yuan in 2024 [6].