CR Sanjiu(SZ:000999) Haitong Securities·2024-03-31 16:00Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2] Core Views - The company reported a revenue of 24.739 billion yuan in 2023, representing a year-on-year growth of 36.83%. The net profit attributable to the parent company was 2.853 billion yuan, a year-on-year increase of 16.50% [6][10] - The CHC (Consumer Health Care) business maintained steady growth, with revenue of 11.707 billion yuan in 2023, up 2.83% year-on-year. The prescription drug business faced challenges, with a revenue decline of 12.64% to 5.220 billion yuan [6][10] - The strategic integration of Kunming Pharmaceutical Group is progressing smoothly, with Kunming's revenue at 7.703 billion yuan, down 6.99% year-on-year. The integration aims to position the company as a leader in the aging health industry [6][10] Financial Summary - The company achieved a revenue of 24.739 billion yuan in 2023, with a year-on-year growth of 36.8%. The projected revenues for 2024, 2025, and 2026 are 27.846 billion yuan, 30.848 billion yuan, and 34.058 billion yuan, respectively [7][10] - The net profit for 2023 was 2.853 billion yuan, with projections of 3.247 billion yuan, 3.669 billion yuan, and 4.114 billion yuan for the following years [7][10] - The company’s gross margin for 2023 was 53.2%, with slight improvements expected in the following years [10][11] Earnings Forecast - The forecasted net profits for 2024, 2025, and 2026 are 3.247 billion yuan, 3.669 billion yuan, and 4.114 billion yuan, with growth rates of 13.8%, 13.0%, and 12.1%, respectively [6][10] - The earnings per share (EPS) for 2024, 2025, and 2026 are projected to be 3.29 yuan, 3.71 yuan, and 4.16 yuan [10][11] Strategic Integration - The integration of Kunming Pharmaceutical is expected to enhance the company's industry position and expand its footprint in the aging health sector, contributing to long-term stable growth [6][10]