KPC(SH:600422) Yin He Zheng Quan·2025-03-13 05:06Investment Rating - The report maintains a "Recommended" rating for Kunming Pharmaceutical Group (stock code: 600422) [1] Core Insights - The company achieved an operating revenue of 8.4 billion yuan in 2024, a slight decrease of 0.34% year-on-year, while the net profit attributable to shareholders increased by 19.86% to 648 million yuan [4] - The oral medication segment showed a double-digit growth, with significant sales increases in key products, while the injection segment faced short-term pressure due to policy impacts [4] - The company is focusing on a dual strategy of organic growth and acquisitions, with a five-year strategic plan aimed at doubling revenue by 2028 [4] Financial Performance Summary - 2024 Financials: - Operating Revenue: 8.4 billion yuan - Net Profit: 648 million yuan, up 19.86% - Cash and cash equivalents increased by 767 million yuan [4][5] - Segment Performance: - Oral medications revenue: 3.7 billion yuan, up 1% with a gross margin of 67% - Injection segment revenue: 540 million yuan, down 49% with a gross margin of 83% - Commercial segment revenue: 3.66 billion yuan, up 6% [4] - Future Projections: - Expected net profits for 2025-2027: 741.72 million yuan, 884.19 million yuan, and 1.05 billion yuan respectively, with growth rates of 14.45%, 19.21%, and 19.22% [5][8] - Valuation Metrics: - Projected PE ratios for 2025-2027: 18, 15, and 13 times [5][8]