JUMPCAN(SH:600566) Guotou Securities·2025-05-01 11:24Investment Rating - The investment rating for the company is "Buy-A" with a 6-month target price of 29.30 CNY, compared to the closing price of 26.29 CNY on April 30, 2025 [4]. Core Views - The company experienced a significant decline in revenue and net profit in 2024, with total revenue of 8.017 billion CNY, down 16.96% year-on-year, and net profit of 2.532 billion CNY, down 10.32% year-on-year [1]. - Despite the decline in revenue, the net profit margin improved to 31.64% in 2024, an increase of 2.36 percentage points, attributed to effective control of selling expenses [2]. - The company has increased its cash dividend payout ratio significantly, proposing a cash dividend of 2.09 CNY per share, totaling approximately 19.22 billion CNY, which represents 75.93% of the net profit for 2024, up from 42.43% in 2023 [3]. Summary by Sections Financial Performance - In Q4 2024, the company reported a revenue of 2.212 billion CNY, a decrease of 29.06% year-on-year, and a net profit of 629 million CNY, down 28.44% year-on-year [1]. - For Q1 2025, the company achieved a revenue of 1.525 billion CNY, a decline of 36.51% year-on-year, and a net profit of 440 million CNY, down 47.91% year-on-year [1]. Sales Breakdown - The sales revenue from the heat-clearing and detoxifying category was 2.688 billion CNY in 2024, down 20.45% year-on-year, primarily due to a high base effect from 2023 [2]. - Pediatric products generated sales of 2.254 billion CNY, down 17.78% year-on-year, also affected by a high base from the previous year [2]. - The digestive category saw sales of 1.155 billion CNY, a decrease of 31.52% year-on-year, influenced by centralized procurement factors [2]. Cash Flow and Dividends - The company reported a net operating cash flow of 2.176 billion CNY in 2024, with total cash reserves reaching 11.830 billion CNY by the end of 2024, an increase of 0.914 billion CNY year-on-year [3]. - The dividend payout ratio has increased significantly, indicating strong cash flow management and a commitment to returning value to shareholders [3]. Innovation and R&D - The company is focusing on innovation by increasing investment in new product development, with several new drugs receiving registration certificates and progressing through clinical trials [4]. - The company has established partnerships for the introduction of new products in various therapeutic areas, enhancing its long-term growth potential [4]. Future Projections - Revenue growth is projected to decline by 6.2% in 2025, followed by a recovery with growth rates of 7.4% and 6.8% in 2026 and 2027, respectively [8]. - Net profit growth is expected to decline by 11.1% in 2025, with subsequent recoveries of 10.5% and 10.0% in the following years [8].