JZYY(SH:600750) KAIYUAN SECURITIES·2025-03-20 07:40Investment Rating - The investment rating for Jiangzhong Pharmaceutical (600750.SH) is "Buy" (maintained) [1] Core Views - The company is expected to achieve steady revenue and profit growth in 2024, with a projected revenue of 4.435 billion yuan (down 2.59% year-on-year) and a net profit of 788 million yuan (up 9.67% year-on-year) [4] - The report highlights the company's strong brand advantage in the gastrointestinal and intestinal medication sectors, which is anticipated to drive long-term growth potential [4] - The earnings forecast for 2025-2027 includes net profits of 891 million yuan, 1.008 billion yuan, and 1.131 billion yuan respectively, with corresponding EPS of 1.42 yuan, 1.60 yuan, and 1.80 yuan [4] Financial Performance Summary - In 2024, the company achieved a gross margin of 63.52% (down 1.79 percentage points) and a net margin of 19.40% (up 1.94 percentage points) [4] - The sales expense ratio decreased to 33.70% (down 3.38 percentage points), while the management expense ratio increased to 5.16% (up 0.37 percentage points) [4] - The non-prescription drug segment generated revenue of 3.266 billion yuan (up 7.07%) with a gross margin of 72.74% (up 1.04 percentage points) [5] - The prescription drug segment reported revenue of 793 million yuan (down 3.50%) with a gross margin of 39.30% (down 17.54 percentage points) [5] Business Segment Insights - The company is focusing on enhancing its OTC brand advantages and has seen significant growth in its core products, particularly in the gastrointestinal category [6] - The health consumer products segment is undergoing a transformation with a focus on self-developed products, which is expected to contribute to future growth [6] - The prescription drug segment is targeting specific demographics and therapeutic areas, including elderly care, women's health, and gastrointestinal treatments [6]