以岭药业（002603）：季度净利率显示业务已重返正轨

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 20.67 RMB, reflecting a positive outlook based on the company's recovery and growth potential [7][5]. Core Insights - The company has shown significant improvement in its financial performance, with a notable increase in net profit and revenue in the third quarter of 2025, indicating a return to a growth trajectory [1][2]. - The operational efficiency and cash flow have been steadily improving, with net profit margins recovering to levels between 18% and 20% in the second and third quarters of 2025 [2]. - The company is expected to achieve double-digit growth in its cardiovascular and respiratory product lines, driven by improved marketing and seasonal demand [3]. Financial Performance Summary - For the first three quarters of 2025, the company reported revenues of 5.87 billion RMB, a year-over-year decrease of 8%, but a significant increase in net profit by 80% to 1 billion RMB [1]. - The third quarter alone saw revenues of 1.83 billion RMB, with net profit exceeding 330 million RMB, marking over a 1000% increase year-over-year [1]. - The company’s gross margins for the second and third quarters of 2025 were reported at 67.4% and 62.9%, respectively, indicating strong profitability [2]. Product Line and Innovation - The company has a robust pipeline of innovative products, with several traditional Chinese medicine and chemical drug projects progressing through various stages of development [4]. - The cardiovascular segment generated over 3 billion RMB in revenue for the first three quarters of 2025, with expectations for growth in the coming years [3]. - The respiratory product line, particularly the Lianhua Qingwen, is anticipated to see increased sales as seasonal demand rises in the autumn and winter [3].