HWHG(SH:600079) Tai Ping Yang·2024-11-05 11:16Investment Rating - The report maintains a "Buy" rating for Renfu Pharmaceutical (600079) [2][7] Core Insights - The major shareholder's restructuring has made positive progress, with the restructuring plan expected to be finalized in the first half of 2025 [4] - The core business of Renfu Pharmaceutical continues to grow steadily, with a 5.70% year-on-year increase in revenue for the first three quarters of 2024 [3] - The company's anesthetic and analgesic products are essential for surgeries, and their market position remains strong, contributing to robust growth [5] Financial Performance Summary - For the first three quarters of 2024, the company reported revenue of 19.143 billion yuan, a 5.70% increase year-on-year, and a net profit of 1.590 billion yuan, a decrease of 10.12% [3] - The third quarter of 2024 saw revenue of 6.282 billion yuan, up 9.66% year-on-year, and a net profit of 479 million yuan, an increase of 7.57% [3] - The company's gross margin for the first three quarters of 2024 was 46.76%, an increase of 0.90 percentage points year-on-year [6] Cost Management and Efficiency - The company has maintained stable costs, with sales expenses increasing by 3.46% year-on-year, while the sales expense ratio decreased by 0.40 percentage points [6] - Management expenses rose by 15.00% year-on-year, influenced by growth-related rewards and increased depreciation [6] Earnings Forecast - Revenue projections for 2024, 2025, and 2026 are 26.010 billion yuan, 28.003 billion yuan, and 30.243 billion yuan, respectively, with year-on-year growth rates of 6.06%, 7.66%, and 8.00% [7][9] - Expected net profits for the same years are 2.210 billion yuan, 2.581 billion yuan, and 3.039 billion yuan, with growth rates of 3.55%, 16.78%, and 17.73% [7][9] - Corresponding EPS for 2024, 2025, and 2026 are projected to be 1.35 yuan, 1.58 yuan, and 1.86 yuan, with PE ratios of 16, 13, and 11 times, respectively [7][9]