Joincare(SH:600380) KAIYUAN SECURITIES·2024-03-14 16:00Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [2]. Core Insights - The company is a leader in inhalation formulations and is expanding its diverse business portfolio, focusing on innovative drugs and high-barrier formulations. It has a robust product lineup that addresses various diseases, including respiratory, oncology, and mental health [4][12]. - The company has shown steady revenue growth, with a projected net profit of 15.53 billion, 18.28 billion, and 21.64 billion yuan for 2023, 2024, and 2025 respectively, corresponding to EPS of 0.81, 0.96, and 1.13 yuan [4][18]. Summary by Sections Company Performance - The company has experienced stable revenue growth, with 2022 revenue at 17.14 billion yuan, a 7.79% increase year-on-year. The net profit for 2022 was 1.50 billion yuan, reflecting a 13.11% increase [18][19]. - The revenue structure is clear, with chemical preparations and raw materials being the main contributors, accounting for 53.82% and approximately 30% of total revenue respectively [20][21]. Inhalation Formulations - The inhalation segment is a key focus, with significant growth potential. The company achieved 11.12 billion yuan in revenue from inhalation products in the first three quarters of 2023, a year-on-year increase of 28.98% [5][25]. - The market for respiratory diseases is expanding, with an estimated 1.72 billion patients in China suffering from respiratory conditions, projected to grow to 1.80 billion by 2025 [26][28]. Innovation and R&D - The company emphasizes innovation, with a strong pipeline of inhalation products and a commitment to R&D, reflected in a 10.16% R&D expense ratio in 2022 [19][22]. - The company has successfully launched several inhalation products and is actively developing new formulations to enhance market share [5][25]. Financial Metrics - The company maintains stable gross and net profit margins, with a gross margin of 63.53% in 2022 and a net profit margin of 16.88% [19][20]. - The operating cash flow is robust, with a net cash flow from operating activities of 3.98 billion yuan in 2022, a 55.21% increase year-on-year [21].