Shanghai Pharma(601607) 国金证券·2025-01-02 03:00Investment Rating - The report maintains a "Buy" rating for the company [20]. Core Views - The company is expected to achieve revenue of RMB 276.23 billion, RMB 303.85 billion, and RMB 338.80 billion for the years 2024, 2025, and 2026 respectively, with year-on-year growth rates of 6%, 10%, and 12% [20]. - The net profit attributable to the parent company is projected to be RMB 5 billion, RMB 6.10 billion, and RMB 7.31 billion for the years 2024, 2025, and 2026, reflecting growth rates of 34%, 21%, and 20% respectively [20]. Summary by Sections Company Overview - The company is involved in the pharmaceutical industry, with a significant focus on traditional Chinese medicine (TCM) [20]. - TCM revenue reached RMB 5.19 billion, accounting for nearly 40% of the total industrial revenue of RMB 12.73 billion, with expectations to exceed RMB 10 billion for the year [20]. Recent Developments - The company has completed a transaction to acquire a 60% stake in Shanghai Hehuang Pharmaceutical, enhancing its market presence, especially in lower-tier markets [20]. - The company’s CSO (Contract Sales Organization) business has seen a remarkable year-on-year growth of 176.3%, with sales revenue reaching approximately RMB 6.1 billion [20]. Financial Projections - The report forecasts a steady increase in revenue and net profit over the next three years, with specific figures outlined for each year [22]. - The diluted earnings per share are expected to rise from RMB 1.36 in 2024 to RMB 1.97 in 2026 [22]. Market Position - The company is strengthening its academic and promotional capabilities through its partnership with Shanghai Hehuang Pharmaceutical, which has a robust sales team and a strong presence in the market [20]. - The internationalization of TCM products, such as the successful registration and export of Dan Ning Pian in Canada, marks significant milestones for the company [20].