Jointown(SH:600998) Haitong Securities·2024-04-07 16:00Investment Rating - The investment rating for the company is "Outperform the Market" [2][7][18] Core Views - The company, a leading private pharmaceutical distribution firm, has shown steady revenue growth, with a CAGR of 12.17% from 2019 to 2022, increasing from 99.497 billion to 140.424 billion RMB [6][9] - The company is actively transforming its traditional pharmaceutical distribution business into a digital and platform-based model, achieving significant results [6][9] - The company is pursuing a REITs strategy to enhance asset liquidity and diversify financing channels [7][9] Summary by Sections Revenue and Profit Growth - The company's revenue increased from 99.497 billion RMB in 2019 to 140.424 billion RMB in 2022, with a net profit growth from 1.727 billion RMB to 2.085 billion RMB during the same period [6][9] - In the first three quarters of 2023, the company achieved a revenue of 114.364 billion RMB, a year-on-year growth of 11.09%, and a net profit of 1.728 billion RMB, up 14.01% [6][9] Digital Transformation - The company has implemented a digital transformation in its pharmaceutical distribution business, establishing a comprehensive service model that integrates distribution, logistics, and product promotion [6][9] - The digital logistics and supply chain solutions business grew by 31.59% year-on-year, with a significant gross profit increase of 50.11% [6][9] REITs Strategy - The company is actively pursuing public REITs issuance to revitalize its substantial warehousing and logistics assets, aiming to enhance asset liquidity and establish a virtuous cycle of asset development [7][9] Earnings Forecast - The company is projected to achieve net profits of 2.369 billion RMB, 2.723 billion RMB, and 3.171 billion RMB for the years 2023, 2024, and 2025, respectively, with year-on-year growth rates of 13.6%, 14.9%, and 16.4% [7][9][14]