Fangsheng Pharmaceutical(SH:603998) China Post Securities·2025-12-30 02:39Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [1]. Core Insights - The inclusion of the innovative traditional Chinese medicine product, Yangxue Qufeng Zhitong Granules, in the 2025 National Medical Insurance Directory is expected to enhance market promotion, hospital access, and sales scale, positively impacting the company's future operating performance and market share [4]. - The product has demonstrated good efficacy and safety in clinical trials, showing advantages over Western medicine in treating recurrent tension-type headaches [5]. - The company has additional innovative traditional Chinese medicine products included in the insurance directory, indicating a strong pipeline for future growth [6]. - Revenue forecasts for 2025-2027 are projected at 1.828 billion, 2.023 billion, and 2.247 billion yuan, with net profits of 301 million, 364 million, and 439 million yuan respectively, suggesting a favorable valuation with current PE ratios of 16, 13, and 11 times [7]. Company Overview - The latest closing price of the company's stock is 11.11 yuan, with a total market capitalization of 4.9 billion yuan [3]. - The company has a total share capital of 439 million shares, with an asset-liability ratio of 46.9% and a current PE ratio of 18.83 [3].