Jiangsu wuzhong(SH:600200) Soochow Securities·2024-04-28 03:30Investment Rating - The report maintains a "Buy" rating for the company, with a projected net profit of 1.3 billion CNY for 2024, 2.6 billion CNY for 2025, and 4.0 billion CNY for 2026, reflecting year-on-year growth of +274%, +109%, and +54% respectively [1]. Core Insights - The company's profitability is steadily improving, with a gross margin of 24.3% and a net profit margin of -3.3% for 2023, showing a year-on-year change of -4.3 percentage points and +0.5 percentage points respectively. For Q1 2024, the gross margin is projected to be 20.9% and the net margin 0.7%, with significant declines attributed to the pharmaceutical business [1]. - The company has a well-established layout in pharmaceutical products and the medical aesthetics industry, with a comprehensive pipeline in medical aesthetics, including the AestheFill product expected to launch in H1 2024 [1][12]. - The medical aesthetics business saw a revenue increase of 2697% in 2023, indicating a strong growth trajectory [12]. Financial Summary - The company reported total revenue of 2.24 billion CNY in 2023, a year-on-year increase of 10.6%, with a net loss of 0.7 billion CNY, which is a reduction in losses compared to the previous year [11]. - For Q1 2024, the company achieved revenue of 0.7 billion CNY, reflecting a 15% year-on-year growth, although it still reported a net loss of 506 thousand CNY [11]. - The pharmaceutical business generated 1.8 billion CNY in revenue in 2023, accounting for 82% of total revenue, with a year-on-year growth of 29.5% [12].