Investment Rating - The investment rating for the company is "Buy" [8] Core Views - The company operates in the chemical formulation, raw materials, and traditional Chinese medicine sectors, with a strong reputation for its gluconate series raw materials in the domestic market [1] - The company has established long-term stable partnerships with major production enterprises such as Harbin Pharmaceutical Group and Auno (China) Pharmaceutical [1] - In the first three quarters of 2024, the company reported a significant decline in revenue and net profit, with revenue of 111.37 million yuan, down 31.69% year-on-year, and a net profit of 20.27 million yuan, down 47.37% year-on-year [4] Financial Performance Summary - For the fiscal years 2020 to 2023, the company's revenue showed a steady increase from 182.64 million yuan in 2020 to 216.48 million yuan in 2023, with a compound annual growth rate (CAGR) of approximately 9.2% [2] - The gross profit margin improved from 45.17% in 2020 to 47.15% in 2023, indicating better cost management and pricing strategies [2] - The return on equity (ROE) decreased from 22.30% in 2020 to 12.17% in 2023, reflecting challenges in maintaining profitability amidst rising costs [2] - The company’s earnings per share (EPS) remained relatively stable, with a slight decline from 0.65 yuan in 2022 to 0.64 yuan in 2023 [2] Recent Quarterly Performance - In Q3 2024, the company achieved a revenue of 36.08 million yuan, down 9.08% year-on-year, and a net profit of 4.69 million yuan, down 41.67% year-on-year [3] - The gross margin for Q3 2024 was reported at 38.37%, a decrease of 7.35 percentage points compared to the previous year, while the net margin was 12.71%, down 6.14 percentage points [5] - The company continues to invest in research and development, with R&D expenses increasing to 5.53% of revenue in the first nine months of 2024 [4]
新赣江：市场需求影响，收入利润Q3单季度承压