上海医药深度报告：全国医药流通龙头，工商业一体化发展

Investment Rating - The report gives a "Buy" rating for the company, marking its first coverage [4][6]. Core Views - The company is a leading integrated pharmaceutical group in China, with a dual-driven model of commercial and industrial operations. It has a strong presence in both pharmaceutical manufacturing and distribution, producing around 700 drug varieties and serving as the second-largest national pharmaceutical distributor [1][15]. - The company has seen steady revenue growth, with a reported revenue of 209.63 billion yuan for the first three quarters of 2024, a year-on-year increase of 6.14%, and a net profit of 4.05 billion yuan, up 6.78% year-on-year [1][4]. Summary by Sections 1. Company Overview - The company is recognized as a national leader in pharmaceutical distribution and has a comprehensive product portfolio across various therapeutic areas, including oncology and cardiovascular diseases [1][15]. - It has a robust distribution network covering 31 provinces and regions in China, with over 70,000 medical institutions served [15][20]. 2. Commercial Operations - The commercial segment is the company's core, with significant growth in its CSO (Contract Sales Organization) business, achieving a sales amount of approximately 6.1 billion yuan, a year-on-year increase of 176.3% [2][42]. - The company is actively expanding into non-pharmaceutical sectors, including medical devices and health foods, with a reported sales growth of 11.9% in its health device business [2][43]. 3. Industrial Operations - The industrial segment has shown strong capabilities, with a focus on innovation and a pipeline of 60 new drug projects, including 46 innovative drugs [3][60]. - The company has increased its R&D investment significantly, from 1.39 billion yuan in 2018 to 2.6 billion yuan in 2023, reflecting a commitment to innovation [3][56]. 4. Financial Projections - Revenue projections for 2024-2026 are estimated at 281.57 billion, 308.36 billion, and 338.59 billion yuan, with corresponding net profits of 5.04 billion, 5.59 billion, and 6.31 billion yuan, indicating a strong growth trajectory [4][13]. - The company is expected to benefit from the increasing concentration in the pharmaceutical distribution industry and the rapid growth of its innovative business segments [4][39].