ZHONGSHENGYAOYE(002317) 国盛证券·2024-11-07 07:30Investment Rating - The report maintains a "Buy" rating for the company [3]. Core Views - The company's Q3 2024 performance shows short-term pressure, with revenue of 1.908 billion yuan, down 7.9% year-on-year, and a net profit of 150 million yuan, down 46.8% year-on-year. The third quarter revenue was 544 million yuan, down 7.7% year-on-year, with a net profit of 61 million yuan, down 13.5% year-on-year [1]. - The impact of traditional Chinese medicine procurement is gradually clearing, allowing the company to adopt targeted marketing strategies to maintain its competitive advantage in core products. The report anticipates a recovery in product usage and a potential increase in volume despite price reductions [1]. - The company has made progress in innovation, with one innovative drug approved for market and several others in clinical trials. The establishment of a multi-modal research and development ecosystem is expected to drive long-term performance [1]. Financial Summary - For 2024-2026, the company is projected to achieve net profits of 251 million yuan, 363 million yuan, and 425 million yuan, with corresponding growth rates of -4.8%, 44.6%, and 17.1% respectively. The price-to-earnings ratios are estimated at 45X, 31X, and 26X [1][2]. - The company's revenue for 2024 is expected to be 2.69 billion yuan, with a growth rate of 3.0%. The net profit for 2024 is projected at 251 million yuan, reflecting a decline of 4.8% year-on-year [2][9].