Jointown(SH:600998) KAIYUAN SECURITIES·2024-04-30 06:00Investment Rating - The investment rating for the company is "Buy" (maintained) [2] Core Views - The company achieved stable revenue and profit growth in 2023, with a revenue of 150.14 billion yuan (up 6.92% year-on-year) and a net profit attributable to shareholders of 2.17 billion yuan (up 4.27% year-on-year) [2] - The company's "Three New and Two Transformations" strategy is expected to empower long-term development, despite adjustments to profit forecasts for 2024-2026 due to promotional expenses [2] - The company is focusing on digital pharmaceutical distribution and supply chain business, which showed steady growth, while the general brand promotion business experienced remarkable growth of 46.01% [3] Financial Performance Summary - In 2023, the company's revenue from digital pharmaceutical distribution and supply chain was 124.04 billion yuan (up 2.47%), while the general brand promotion business generated 19.58 billion yuan (up 46.01%) [3] - The company's gross margin in 2023 was 8.07% (up 0.27 percentage points), and the net margin was 1.53% (down 0.10 percentage points) [2] - The forecast for net profit attributable to shareholders for 2024-2026 is adjusted to 2.445 billion yuan, 2.778 billion yuan, and 3.194 billion yuan respectively [2] Business Development - The new retail and "Ten Thousand Store Franchise" initiatives are progressing well, with 21,192 stores established across 31 provinces and regions by Q1 2024 [4] - The company is committed to developing a digital platform to enhance services for franchise stores and improve operational efficiency [4] Key Financial Metrics - The company's projected revenue for 2024 is 165.49 billion yuan, with a year-on-year growth of 10.2% [5] - The earnings per share (EPS) for 2024 is expected to be 0.63 yuan, with a price-to-earnings (P/E) ratio of 12.9 times [5] - The total market capitalization of the company is approximately 31.584 billion yuan [6]