CR Sanjiu(SZ:000999) Wanlian Securities·2024-04-24 12:30Investment Rating - The investment rating for the company is "Buy" [5][14]. Core Insights - The company reported a revenue of 7.294 billion yuan in Q1 2024, representing a year-on-year growth of 14.82%. The net profit attributable to shareholders was 1.364 billion yuan, up 18.49%, while the net profit excluding non-recurring items was 1.328 billion yuan, an increase of 17.38% [3][11]. - The CHC (Consumer Health Care) business is experiencing rapid growth, with a strong performance in prescription drugs. The demand for the 999 cold medicine has been boosted by ongoing consumer needs and the high incidence of colds [4]. - The integration with Kunming Pharmaceutical Group is progressing steadily, laying a solid foundation for future collaboration. The strategic development plan for the next five years focuses on chronic disease management and premium traditional Chinese medicine [4]. - The company is actively developing innovative drugs, improved innovative drugs, generic drugs, and classic formulas. As of Q1 2024, the R&D pipeline includes several projects in various therapeutic areas, with one product recently approved for market [4][11]. Financial Forecast - The forecasted revenues for 2024, 2025, and 2026 are 29.191 billion yuan, 33.509 billion yuan, and 37.284 billion yuan, respectively. Corresponding net profits are expected to be 3.390 billion yuan, 3.847 billion yuan, and 4.265 billion yuan [5][11]. - The earnings per share (EPS) are projected to be 3.43 yuan, 3.89 yuan, and 4.32 yuan for the years 2024, 2025, and 2026, respectively [5][11].