点评报告：CHC业务稳健增长，昆药融合工作稳步推进

Investment Rating - The investment rating for the company is "Buy" [4][15]. Core Views - The company achieved a revenue of 24.739 billion yuan in 2023, representing a year-on-year growth of 36.83%, with a net profit attributable to shareholders of 2.853 billion yuan, up 16.50% [2][4]. - The CHC (Consumer Health Care) business reported a revenue of 11.707 billion yuan, growing by 2.83%, with a gross margin of 60.60%, an increase of 3.89 percentage points year-on-year [3]. - The prescription drug business saw a revenue decline of 12.64% to 5.220 billion yuan, with a gross margin of 52.15%, down 0.68 percentage points [3]. - The integration with Kunming Pharmaceutical Group is progressing steadily, with the group generating a revenue of 7.703 billion yuan, a decrease of 6.99% [3]. Summary by Sections Financial Performance - In Q4 2023, the company reported a revenue of 6.131 billion yuan, a growth of 2.72%, but a net profit of 450 million yuan, down 9.29% [2]. - The operating cash flow for 2023 was 4.192 billion yuan, an increase of 39.43% [2]. - The overall gross margin for 2023 was 53.24%, a decrease of 0.78 percentage points, and the net profit margin was 12.83%, down 0.98 percentage points [2]. Business Segments - The CHC business is driven by strong growth in OTC (Over-the-Counter) products, particularly the 999 brand, which includes products like 999 Cold Medicine and 999 Anti-Virus Oral Liquid [3]. - The professional brand business experienced a slight decline due to adjustments in generic drug varieties, while the children's health segment focused on digital marketing strategies [3]. - The prescription drug segment faced challenges due to national standard changes and the initiation of collective procurement in 15 provinces, leading to lower-than-expected performance [3]. Future Outlook - Revenue forecasts for 2024, 2025, and 2026 are projected at 29.191 billion yuan, 33.509 billion yuan, and 37.284 billion yuan, respectively, with corresponding net profits of 3.390 billion yuan, 3.845 billion yuan, and 4.263 billion yuan [4][11]. - The company is expected to maintain its leading position in the OTC market and achieve steady growth through the ongoing integration with Kunming Pharmaceutical Group [11].