Shanghai Pharma(601607) 平安证券·2025-04-29 08:42Investment Rating - The report maintains a "Recommended" investment rating for Shanghai Pharmaceuticals (601607.SH) [1][7] Core Views - The company reported a revenue of 70.763 billion yuan in Q1 2025, a year-on-year increase of 0.87%, while the net profit attributable to shareholders decreased by 13.56% to 1.333 billion yuan [3][4] - The company has a strong cash position with 36.167 billion yuan in cash as of Q1 2025, representing a year-on-year growth of 20.40%, which supports ongoing mergers and acquisitions [7][8] - The acquisition of a 10% stake in Shanghai Hutchison Pharmaceuticals, increasing total ownership to 60%, is expected to enhance the company's traditional Chinese medicine business [7][8] - Future performance is projected to grow, with net profits expected to reach 5.419 billion yuan in 2025, 6.169 billion yuan in 2026, and 6.612 billion yuan in 2027 [7][8] Financial Summary - Revenue projections for 2025 are set at 297.932 billion yuan, with a year-on-year growth of 8.2% [6][8] - The net profit for 2025 is estimated at 5.419 billion yuan, reflecting a growth of 19.0% compared to 2024 [6][8] - The gross margin is expected to stabilize around 10.9% in 2025, while the net margin is projected to be 1.8% [6][8] - The company’s return on equity (ROE) is forecasted to improve to 7.1% in 2025 [6][8] - The price-to-earnings (P/E) ratio is projected to decrease to 12.4 in 2025, indicating a potentially attractive valuation [6][8]