Jointown(600998) 华创证券·2024-11-08 06:25Investment Rating - The report maintains a "Recommended" rating for the company [1] Core Views - The company's revenue for the first three quarters of 2024 is reported at 113.43 billion yuan, with a year-on-year change of -0.8%. However, in Q3 2024, revenue increased by 3.6% year-on-year [1] - The company's high-margin business segments are experiencing rapid growth, with CSO business revenue increasing by 18.0% year-on-year, and the "Good Medicine" franchise seeing a 58.3% increase [1] - The company is progressing well with its REITs and Pre-REITs projects, which are expected to contribute significantly to net profit if successfully issued [1] Financial Performance Summary - Total revenue for 2023 is projected at 150.14 billion yuan, with a growth rate of 6.9%. For 2024, the revenue is expected to be 151.60 billion yuan, reflecting a modest growth of 1.0% [2] - The net profit attributable to the parent company for 2023 is estimated at 2.17 billion yuan, with a year-on-year growth of 4.3%. However, a decline of 4.9% is expected in 2024 [2] - The company's gross margin for Q3 2024 improved to 8.1%, with a net profit margin of 1.4% [1] Valuation and Price Target - The target price for the company is set at 7.1 yuan, based on a target PE of 15x for 2025 [1][3] - The current market price is 5.50 yuan, indicating potential upside based on the target price [3] Key Financial Metrics - The company has a total market capitalization of 27.73 billion yuan and a debt-to-asset ratio of 67.52% [3] - The earnings per share (EPS) for 2024 is projected at 0.41 yuan, with a PE ratio of 13 [2][3]