2024Q1拐点显现，集采及降价影响逐渐缓解

Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook based on expected performance improvements in the coming years [1]. Core Views - The company reported a revenue of 4.123 billion yuan in 2023, a decrease of 5.85% year-on-year, with a net profit attributable to shareholders of 563 million yuan, down 24.86% year-on-year. However, Q1 2024 showed signs of recovery with a revenue of 1.038 billion yuan, an increase of 8.42% year-on-year, and a net profit of 151 million yuan, up 13.53% year-on-year [1]. - The report highlights that the impact of centralized procurement on the company's formulation sales is gradually easing, and new product launches are expected to drive growth. The company’s formulation sales in 2023 were 2.278 billion yuan, down 12.4% year-on-year, but recovery is anticipated in 2024 [1]. - The raw material drug segment saw a revenue of 1.786 billion yuan in 2023, an increase of 3% year-on-year, attributed to the company's competitive advantages despite a challenging market environment [1]. - The earnings forecast for 2024-2026 estimates EPS of 0.69, 0.83, and 1.00 yuan, with corresponding PE ratios of 16.60, 13.76, and 11.40 times, respectively [1]. Financial Summary - In 2023, the company achieved a gross margin of 52.88%, a decrease of 5.28 percentage points year-on-year, and a net profit margin of 13.63%, down 3.43 percentage points year-on-year. For Q1 2024, the gross margin improved to 55.11%, an increase of 2.76 percentage points year-on-year [1]. - The report provides a detailed financial outlook, projecting revenues of 4.783 billion yuan in 2024, with a year-on-year growth of 16%, and net profits of 682 million yuan, reflecting a growth of 21% [1].