CR Sanjiu(SZ:000999) INDUSTRIAL SECURITIES·2024-11-10 04:06Investment Rating - The report maintains an "Accumulate" rating for China Resources Sanjiu (000999.SZ) [4] Core Views - The company demonstrated stable operational performance in Q3 2024, with revenue reaching 19.74 billion yuan, a year-on-year increase of 6.08%, and a net profit attributable to shareholders of 2.96 billion yuan, up 23.19% year-on-year [4] - The core CHC health consumer goods business is focusing on comprehensive layout and brand influence enhancement, while the prescription drug business is expanding its product line and enhancing competitiveness [4] - The company is pursuing strategic acquisitions, including a significant asset restructuring plan to acquire 28% of Tianjin Tasly Pharmaceutical, which is expected to enhance innovation in traditional Chinese medicine [4] - Profitability is improving, with a gross margin of 52.68% and a net profit margin of 16.44% for the first three quarters of 2024 [4] - Revenue and profit forecasts for 2024-2026 have been adjusted, with expected revenues of 26.445 billion yuan, 29.227 billion yuan, and 32.291 billion yuan, and net profits of 3.396 billion yuan, 3.883 billion yuan, and 4.406 billion yuan respectively [4] Financial Summary - For 2023, the company reported operating revenue of 24.739 billion yuan and a net profit of 2.853 billion yuan [3] - The projected operating revenue for 2024 is 26.445 billion yuan, with a year-on-year growth of 6.9% [3] - The projected net profit for 2024 is 3.396 billion yuan, reflecting a year-on-year growth of 19.0% [3] - The gross margin is expected to remain stable around 53.0% in 2024, with a slight increase to 53.7% by 2026 [3] - The return on equity (ROE) is projected to improve from 15.0% in 2023 to 17.6% by 2026 [3]