哈药股份（600664）：新班子，新气象，新作为

Investment Rating - The report initiates coverage on Harbin Pharmaceutical Group Co., Ltd. with a "Buy" rating and a target price of RMB 4.95, based on a 17x PE for 2025 [1][5][19]. Core Views - The company has undergone significant changes in management, systems, and operations since the end of 2023, which are expected to drive sustainable growth in 2024 and beyond. The anticipated performance improvements are reflected in a projected revenue increase of 15-20% annually from 2024 to 2027, with net profit margins expected to rise from 3.4% in 2023 to 8.5% by 2027 [2][3][4][19]. Summary by Sections Management Changes - The management team has been reshuffled, with a new chairman appointed from the Harbin State-owned Assets Supervision and Administration Commission, and a focus on internal promotions to enhance cohesion and operational efficiency [2][30][32]. Operational Reforms - The company has implemented reforms in management systems, including adjustments to internal controls and incentive structures, aimed at improving decision-making efficiency and fostering a performance-driven culture [2][30][32]. Revenue and Profit Growth - Industrial revenue for 2023 was RMB 5.3 billion, with a net profit margin of 3.4%. Projections for 2024-2027 indicate revenues of RMB 16.9 billion, RMB 18.5 billion, RMB 20.2 billion, and RMB 22.1 billion, respectively, with net profits expected to grow significantly [3][5][19]. Market Position and Product Strategy - The company aims to cultivate a product matrix with three RMB 1 billion products and several others at lower tiers, focusing on enhancing market share in key segments such as calcium and zinc supplements, and traditional Chinese medicine [3][35][36]. Valuation and Future Outlook - The report anticipates a recovery in the company's valuation as growth potential is validated, with a projected net profit of RMB 6.0 billion in 2024, increasing to RMB 10.7 billion by 2027, reflecting a compound annual growth rate (CAGR) of 52.4% in 2024 [5][19][23].