Fangsheng Pharmaceutical(SH:603998) Xinda Securities·2025-10-31 02:08Investment Rating - The investment rating for Fangsheng Pharmaceutical (603998) is not explicitly stated in the provided documents, but the report indicates a positive outlook based on performance metrics and growth potential [1]. Core Insights - The company reported a total revenue of 1.253 billion yuan for the first three quarters of 2025, a year-on-year decrease of 7.02%, while the net profit attributable to shareholders increased by 17.6% to 268 million yuan [2]. - The growth in net profit is attributed to a decrease in expense ratios, with a notable reduction in sales and management expenses [3]. - The company has successfully commercialized two traditional Chinese medicine (TCM) products, with plans for further commercialization of new products, including a TCM for treating frequent tension-type headaches [3]. Financial Performance Summary - For 2025, the company is projected to achieve revenues of 1.740 billion yuan, a slight decrease of 2.1% year-on-year, with net profit expected to rise by 24.6% to 318 million yuan [5]. - The gross profit margin is forecasted to be 70.5% in 2025, with a net asset return (ROE) of 18.4% [4]. - Earnings per share (EPS) is projected to increase from 0.58 yuan in 2024 to 0.72 yuan in 2025, reflecting a positive growth trajectory [4]. Product and Market Development - The cardiovascular medication segment showed a revenue increase of 10.16% year-on-year in Q3 2025, driven by strong sales of specific products [3]. - The company has expanded its market presence for its pediatric cough syrup, covering over 320 public medical institutions and nearly 2000 in total [3]. - The newly approved TCM product, Yangxue Qufeng Zhitong Granules, is expected to become a significant profit driver if included in the national basic medical insurance directory [3].