CR Sanjiu(SZ:000999) Guotai Junan Securities·2024-11-04 07:25Investment Rating - The report maintains a "Buy" rating for the company [3][5][17]. Core Views - The overall performance is in line with expectations, with a continuous reduction in sales expense ratio due to product mix changes and scale advantages, indicating further optimization potential. External mergers and acquisitions are ongoing, which are expected to drive future performance growth [2][3]. Financial Summary - For the first three quarters of 2024, the company achieved revenue of 19.74 billion yuan (+6.08%) and a net profit attributable to shareholders of 2.96 billion yuan (+23.19%). The net profit excluding non-recurring items was 2.75 billion yuan (+19.48%). In Q3 2024, the single-quarter revenue was 5.63 billion yuan (+3.16%), with net profit attributable to shareholders at 561 million yuan (+6.85%) [3][4]. - The report maintains the EPS forecasts for 2024-2026 at 2.62, 2.92, and 3.17 yuan, respectively, with a target price of 58.40 yuan, corresponding to a PE of 20X for 2025 [3][5]. Sales and Profitability - The gross margin for Q3 2024 was 50.47% (up 0.29 percentage points year-on-year), and the net margin was 11.85% (up 0.22 percentage points year-on-year). The sales expense ratio for Q3 2024 was 25.55%, down 1.52 percentage points year-on-year, primarily due to a decrease in the proportion of high-sales-expense prescription drugs and the realization of scale effects in the industrial sector [3][4]. Research and Development - The company is actively expanding its internal product categories in oncology, orthopedics, dermatology, and respiratory treatments, with a R&D expense ratio of 3.30% in Q3 2024 (up 0.31 percentage points year-on-year). Among the four new products developed in-house, one has been submitted for NDA, and two Class 1 chemical drugs have entered clinical Phase I trials [3][4]. Mergers and Acquisitions - The company is continuously advancing quality mergers and acquisitions, with the integration of Kunming Pharmaceutical since its acquisition in 2023. The focus is on enhancing the "Kun Chinese Medicine 1381" premium national medicine brand and improving management efficiency. The acquisition of Tianjin Tasly is also progressing, expected to complete by Q1 2025, which will enhance R&D innovation and operational capabilities [3][4].