Joincare(600380) 国盛证券·2024-04-26 03:02Investment Rating - The report maintains a "Buy" rating for the company [4]. Core Views - The company's Q1 2024 performance met expectations, with revenue of 4.34 billion and net profit of 440 million, both showing slight year-on-year declines of 4.81% and 4.96% respectively. The decline is attributed to price reductions from the ninth batch of centralized procurement for a specific inhalation solution. However, the company anticipates a gradual increase in sales volume of Tobramycin and other products throughout 2024, leading to improved performance [1][2]. Summary by Sections Financial Performance - In Q1 2024, the company reported a revenue of 4.34 billion, a year-on-year decrease of 4.81%. The net profit was 440 million, down 4.96% year-on-year. The adjusted net profit was 428 million, reflecting a decline of 4.26% [1]. - The sales expense ratio decreased to 25.29% from 26.77% in Q1 2023, while the R&D expense ratio increased to 8.69% from 8.36% [2]. - The company achieved a significant increase in operating cash flow, which grew by 291.91% year-on-year [2]. Segment Performance - Chemical preparations generated revenue of 2.14 billion, down 4.86% year-on-year. Hormonal products saw a revenue increase of 39.89% to 807 million, while gastrointestinal products decreased by 25.68% to 589 million [2]. - The revenue from raw materials and intermediates was 1.40 billion, down 3.70% year-on-year. Traditional Chinese medicine revenue fell by 28.38% to 406 million [2]. - Diagnostic reagents and equipment revenue surged by 60.26% to 236 million, and health products saw a remarkable growth of 96.50% to 78 million [2]. Future Outlook - The company is focusing on expanding its respiratory product line, with Tobramycin expected to gain market share following its inclusion in medical insurance. The company anticipates that the product will see rapid growth in 2024 [2]. - The company is also advancing its pipeline in various disease areas, with several innovative products in clinical trials, including an anti-influenza drug expected to be submitted for approval in Q3 2024 [2]. Profit Forecast - The company is projected to achieve net profits of 1.56 billion, 1.75 billion, and 1.99 billion for 2024, 2025, and 2026 respectively, with growth rates of 8.4%, 12.1%, and 13.6% [3].