CR Sanjiu(SZ:000999) Guohai Securities·2024-03-27 16:00Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company achieved significant revenue and profit growth in 2023, with revenue reaching 24.739 billion yuan (up 36.83% year-on-year) and net profit attributable to shareholders at 2.853 billion yuan (up 16.50% year-on-year) [2] - The company expects to maintain double-digit growth in revenue and net profit for 2024, driven by strategic initiatives and innovation investments [3] - The company has a strong brand presence in the OTC market, although the performance of its formula granules was below expectations due to regulatory changes [2][4] Summary by Sections Financial Performance - In 2023, the company reported a revenue of 24.739 billion yuan, a year-on-year increase of 36.83%, and a net profit of 2.853 billion yuan, reflecting a 16.50% increase [2] - The fourth quarter of 2023 saw revenue of 6.131 billion yuan (up 2.72% year-on-year) but a decline in net profit to 450 million yuan (down 9.29% year-on-year) [2] - The operating cash flow significantly improved, with a net cash flow of 4.192 billion yuan, up 39.43% year-on-year [2] Business Segments - The CHC health consumer products segment generated 11.707 billion yuan in revenue, growing by 2.83% year-on-year, with strong performance in brand OTC business [2] - Prescription drug revenue was 5.220 billion yuan, down 12.64% year-on-year, primarily due to the impact of national standards and collective procurement [2] Future Outlook - The company anticipates revenue of 27.904 billion yuan for 2024, with a projected growth rate of 13% [5] - Net profit is expected to reach 3.255 billion yuan in 2024, with a growth rate of 14% [5] - The company aims to enhance its competitive position through innovation and integration with Kunming Pharmaceutical Group [3]