CR Sanjiu(SZ:000999) ZHONGTAI SECURITIES·2025-03-18 13:10Investment Rating - The investment rating for China Resources Sanjiu (华润三九) is "Buy" (maintained) [1][6] 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 [3] - The CHC (Consumer Health Care) business maintained its leading position with a revenue of 12.482 billion yuan in 2024, growing 14.13% year-on-year, while the prescription drug segment achieved a revenue of 6.006 billion yuan, up 15.04% year-on-year [3] - The company is expected to continue its steady growth, with projected revenues of 30.986 billion yuan, 34.549 billion yuan, and 38.004 billion yuan for 2025, 2026, and 2027 respectively, reflecting a growth rate of 12%, 12%, and 10% [1][3] Summary by Relevant Sections Financial Performance - For 2023, the company achieved a revenue of 24.739 billion yuan and a net profit of 2.853 billion yuan, with respective growth rates of 37% and 17% [1] - The projected earnings per share (EPS) for 2025 is 2.98 yuan, with a net profit forecast of 3.821 billion yuan [1][4] Business Segments - The CHC business segment is focusing on enhancing its product mix, particularly in cold, skin, and gastrointestinal categories, while the prescription drug segment is seeing a recovery in its formula granule business [3] - The company is also advancing its merger with Kunming Pharmaceutical Group and the acquisition of Tianjin Tasly Pharmaceutical, which is expected to enhance its competitive edge in the traditional Chinese medicine sector [3] Valuation Metrics - The price-to-earnings (P/E) ratio is projected to decrease from 19.0 in 2023 to 14.1 in 2025, indicating an improving valuation as earnings grow [1][4] - The price-to-book (P/B) ratio is expected to decline from 2.9 in 2023 to 2.3 in 2025, reflecting a strengthening financial position [1][4]