Lushang Freda Pharmaceutical (SH:600223) Tai Ping Yang·2024-11-04 02:18Investment Rating - The investment rating for the company is "Buy" with a target price based on expected performance over the next six months [1][4]. Core Views - The report highlights that the cosmetics segment is currently under pressure, but there is optimism regarding the performance during the Double Eleven shopping festival and the introduction of new products [1]. - The company reported a revenue of 2.803 billion yuan for the first three quarters of 2024, representing a year-on-year increase of 17.45%, while the net profit attributable to shareholders was 171 million yuan, down 28.09% year-on-year [1]. - The report indicates that the company is focusing on internal adjustments and strategic improvements following the divestment of its real estate business, which is expected to yield positive results in the future [1][2]. Financial Summary - For Q3 2024, the company reported a revenue of 877 million yuan, a year-on-year increase of 4.82%, while the net profit attributable to shareholders was 44 million yuan, down 7.76% year-on-year [1]. - The cosmetics segment saw a revenue decline of 4.9% to 522 million yuan in Q3 2024, but the gross margin improved by 4.4 percentage points to 64.48% due to product structure upgrades and reduced manufacturing costs [1]. - The pharmaceutical segment experienced a revenue increase of 19.3% to 130 million yuan in Q3 2024, with a gross margin of 47.43% [1]. Earnings Forecast - The projected net profits for the company for the years 2024, 2025, and 2026 are 271 million yuan, 346 million yuan, and 409 million yuan, respectively, with corresponding PE ratios of 25.7, 20.1, and 17.0 [2][3].