KPC(600422) 华泰证券·2025-03-13 03:25Investment Rating - The report maintains a "Buy" rating for the company [5][8]. Core Views - The company reported a revenue of 8.4 billion RMB and a net profit attributable to shareholders of 648 million RMB for 2024, reflecting a year-on-year growth of 9% and 46% respectively. The adjusted figures, considering the consolidation of Shenghuo, show a 0% growth in revenue and a 20% growth in net profit [1]. - The company aims to achieve an industrial revenue target of 10 billion RMB by 2028, with expectations for growth in its key products, including Kunzhong Medicine and Xuesaitong [1][4]. - The three main business divisions are expected to accelerate: 1. The 1381 division is projected to grow by 20% in 2024, with significant potential for future revenue growth through brand promotion [2]. 2. The 777 division is expected to maintain stable performance with an 11% increase in sales in 2024, targeting the aging population [2]. 3. The 1951 division anticipates a recovery in revenue after a decline due to inventory control [2]. - The company is optimizing its cost structure, with a sales expense ratio of 26.5% in 2024, down 10.1 percentage points year-on-year, and a management expense ratio of 4.4% [3]. - The report outlines a five-year strategic plan and anticipates significant progress in 2025, with a focus on expanding product lines and enhancing operational efficiency [4]. Summary by Sections Financial Performance - The company achieved a revenue of 8.4 billion RMB in 2024, with a net profit of 648 million RMB, marking a 9% and 46% increase year-on-year respectively [1]. - The forecast for net profit attributable to shareholders for 2025-2027 is 7.3 billion RMB, 8.6 billion RMB, and 10.1 billion RMB respectively [5][13]. Business Segments - The 1381 division is expected to see a 20% revenue increase in 2024, driven by brand initiatives [2]. - The 777 division is projected to grow by 11% in 2024, focusing on the health needs of the elderly [2]. - The 1951 division is anticipated to recover after a significant revenue decline due to inventory management [2]. Cost Management - The sales expense ratio is expected to improve to 26.4% in 2025, reflecting enhanced operational efficiency [3]. - Management expenses are projected to increase slightly, while R&D expenses are expected to grow, indicating a commitment to innovation [3][14]. Strategic Outlook - The company is on track to meet its 10 billion RMB revenue target by 2028, with significant growth expected in 2025 [4]. - The report emphasizes the importance of the integration with China Resources and the expansion of product offerings [4].