CR Sanjiu(000999) 浙商证券·2025-03-14 10:23Investment Rating - The investment rating for China Resources Sanjiu (华润三九) is "Buy" (maintained) [3] Core Views - The company reported a revenue of 27.617 billion yuan for 2024, representing a year-on-year growth of 11.63%, and a net profit attributable to shareholders of 3.368 billion yuan, up 18.05% year-on-year [6] - The CHC (Consumer Health Care) business showed rapid growth, with revenue reaching 12.482 billion yuan, a 14.13% increase year-on-year, while the prescription drug business also performed well with a revenue of 6.006 billion yuan, up 15.05% year-on-year [6] - The merger with Tianjin Tasly has received approval from the State-owned Assets Supervision and Administration Commission, which is expected to enhance the company's core competitiveness in the traditional Chinese medicine sector [6] - The company anticipates double-digit revenue growth in 2025, with net profit expected to match revenue growth levels [6] Financial Summary - Revenue projections for 2024 to 2027 are as follows: 27.617 billion yuan (2024), 30.758 billion yuan (2025E), 34.654 billion yuan (2026E), and 39.023 billion yuan (2027E), with respective growth rates of 11.63%, 11.37%, 12.67%, and 12.61% [2] - Net profit attributable to shareholders is projected to be 3.368 billion yuan (2024), 3.837 billion yuan (2025E), 4.425 billion yuan (2026E), and 5.071 billion yuan (2027E), with growth rates of 18.05%, 13.94%, 15.31%, and 14.60% respectively [2] - Earnings per share (EPS) is expected to be 2.62 yuan (2024), 2.99 yuan (2025E), 3.45 yuan (2026E), and 3.95 yuan (2027E) [2] Business Performance - The company achieved a gross profit margin of 51.86% in 2024, a slight decrease of 1.38 percentage points year-on-year, primarily due to business structure adjustments [6] - The net profit margin for 2024 was 12.20%, an increase of 0.67 percentage points year-on-year, and the weighted average return on equity (ROE) was 17.33%, up 1.47 percentage points year-on-year [6] - The integration of Kunming Pharmaceutical Group is progressing, with its revenue for 2024 reported at 8.401 billion yuan, a slight decline of 0.34% year-on-year, but with a net profit increase of 19.86% [6]