JUMPCAN(SH:600566) Great Wall Securities·2024-11-06 17:04Investment Rating - The investment rating for the company is "Buy" with a maintained rating [3][14]. Core Views - The company's performance in Q3 showed a sequential improvement despite facing pressure in Q1-Q3 2024, with revenue and net profit declining year-on-year [2][3]. - The company is focusing on the development of its core products in the heat-clearing and detoxifying, as well as pediatric medication sectors, which have significant competitive advantages [3]. - The introduction of second-line products and continuous business development (BD) efforts are expected to create new growth opportunities for the company [3]. Financial Summary - For the first three quarters of 2024, the company achieved revenue of 58.05 billion yuan, a year-on-year decrease of 11.19%, and a net profit of 19.03 billion yuan, down 2.13% year-on-year [2]. - In Q3 2024, the company reported revenue of 17.71 billion yuan and a net profit of 5.65 billion yuan, reflecting a year-on-year decline of 7.18% and 6.58%, respectively, but a quarter-on-quarter increase of 8.52% and 14.60% [2]. - The company's projected revenue for 2024-2026 is expected to be 83.54 billion yuan, 91.08 billion yuan, and 98.99 billion yuan, with corresponding net profits of 26.5 billion yuan, 29.23 billion yuan, and 31.99 billion yuan [3]. - The earnings per share (EPS) for 2024-2026 are projected to be 2.88 yuan, 3.17 yuan, and 3.47 yuan, with price-to-earnings (P/E) ratios of 10.7X, 9.7X, and 8.9X, respectively [3]. Research and Development - The company has made progress in its R&D efforts, with several products receiving production approval and passing consistency evaluations [2]. - As of H1 2024, the company has submitted new patent applications and received patent grants in China and Europe [2].