General Healthy(SH:605186)2025-05-14 06:33Investment Rating - The investment rating for General Healthy Info & Tech is maintained as BUY with a target price of RMB 22.07 [1][4][7] Core Viewpoints - General Healthy's revenue and attributable net profit for 2024 were RMB 318 million and RMB 33 million respectively, reflecting a year-on-year change of +3.5% and -45.8%, which missed consensus estimates due to short-term disruptions in demand and provisions for asset impairment [1] - In 1Q25, the company reported revenue of RMB 77.06 million and attributable net profit of RMB 3.43 million, showing significant growth of +116.3% in revenue despite a decline of -34.7% in net profit year-on-year, attributed to strategic adjustments and expansion into emerging businesses [1] - The report expresses optimism about the company's potential return to positive earnings growth in 2025 due to proactive expansion into emerging markets and a potential recovery in domestic demand [1] Revenue Segments Summary - Smart pharmacy segment revenue for 2024 was RMB 86.39 million, down -56.8% year-on-year, primarily due to slower hospital bidding processes; however, the segment is expected to recover in 2025 [2] - Intelligent pharmacy intravenous admixture services (PIVAS) saw a remarkable revenue increase to RMB 119 million in 2024, up 675.9% year-on-year, with expectations for continued robust growth in 2025 [2] - Emerging businesses, including logistics and mobile robots, generated RMB 22.79 million in revenue in 2024, indicating potential for further earnings enhancement [2] Business Expansion and Model Innovation - The company has made significant business breakthroughs in regions such as Saudi Arabia, Russia, and Hong Kong, establishing partnerships with distributors across multiple countries [3] - General Healthy is entering the pharmaceutical retail market and plans to replicate its 'smart pharmacy' model nationwide, alongside exploring a 'smart integrated warehouse' model [3] Earnings Forecasts and Valuation - Earnings per share (EPS) forecasts for 2025, 2026, and 2027 are RMB 0.44, RMB 0.59, and RMB 0.76 respectively, reflecting a downward revision from previous estimates [4] - The stock is valued at 50 times the estimated 2025 PE, which is above the peer average of 46 times, with a target price set at RMB 22.07 [4]