业绩稳健增长，盈利能力持续提升

Investment Rating - The report assigns a "Buy-A" investment rating to the company with a 6-month target price of 40.64 CNY, compared to the current stock price of 34.94 CNY as of April 26, 2024 [1][9]. Core Views - The company has demonstrated steady revenue growth, achieving a revenue of 12.122 billion CNY in Q1 2024, representing a year-on-year increase of 7.98%. The net profit attributable to shareholders was 459 million CNY, up 10.86% year-on-year [3]. - The overall expense ratio has been optimized, leading to improved profitability. The gross margin for Q1 2024 was 7.03%, while the net margin was 3.79%, with a decrease in the expense ratio to 2.37% [4]. - The company is focusing on diversifying its business segments, including pharmaceutical retail, pharmaceutical manufacturing, dental academic services, and pharmaceutical logistics, while maintaining a strong position in the pharmaceutical distribution market [5][8]. Summary by Sections Financial Performance - In Q1 2024, the company reported a revenue of 12.122 billion CNY, a 7.98% increase year-on-year, and a net profit of 459 million CNY, reflecting a 10.86% growth [3]. - The company’s gross margin was 7.03%, and the net margin was 3.79%, with a total expense ratio of 2.37%, indicating improved profitability [4]. Business Development - The company is enhancing its market position in Beijing, achieving 100% coverage of grade hospitals and over 4,700 grassroots medical institutions [5]. - The company has established a strong relationship with over a thousand domestic and international suppliers, ensuring a stable supply chain and a wide range of products [5]. - The company is expanding its presence in the narcotic drug sector, covering all 31 provincial-level regions in China and serving over 50,000 medical clients [5]. - The retail segment is also growing, with the company’s subsidiary expanding its network of specialized retail pharmacies [8]. Future Outlook - The company is expected to maintain steady growth in its commercial distribution and direct sales segments, with projected revenue growth rates of 10.07%, 9.50%, and 8.95% for 2024 to 2026 [12]. - The net profit growth rates are forecasted at 9.91%, 10.71%, and 10.30% for the same period [12]. - The report anticipates that the company’s diversified business layout will continue to contribute positively to its performance [13].