新业务逐渐突破，费用率持续优化

Investment Rating - The investment rating for the company is "Buy" [2] Core Views - The company reported a revenue of RMB 596,569.57 million for 2023, an increase of RMB 44,422.02 million or 8.05% year-on-year. The profit attributable to shareholders was RMB 9,053.76 million, up by RMB 528.10 million or 6.19% year-on-year [2][3] - The growth in revenue is primarily driven by the increase in income from pharmaceutical distribution, retail, and medical device distribution businesses [2] - The company has optimized its cost structure, with a decrease in expense ratios across key metrics, including a sales and management expense ratio of 4.38%, down by 0.13 percentage points year-on-year [2][3] Summary by Sections Financial Performance - For 2023, the company achieved a gross profit of RMB 48,512 million, with a gross margin reflecting its operational efficiency [5] - The company’s net asset return rate remained stable at around 13% [2] - The weighted average actual annual interest rate as of December 31, 2023, was 2.82% [2] Revenue Breakdown - Pharmaceutical distribution revenue was RMB 441,050.70 million, accounting for 73.93% of total revenue, with an increase of 8.47% year-on-year [2] - Medical device distribution revenue reached RMB 130,212.94 million, representing 21.83% of total revenue, growing by 7.75% year-on-year [2] - Retail revenue amounted to RMB 35,689.38 million, contributing 5.98% to total revenue, with an increase of 8.22% year-on-year [2] Business Expansion - The company has expanded its retail network, with a total of 12,109 pharmacies by the end of 2023, a net increase of 1,356 stores from the previous year [3] - The company is focusing on enhancing its supply chain services and has initiated new projects in nearly 30 provinces, with significant growth in specialized services [3] Future Projections - Revenue projections for 2024-2026 are RMB 645,315 million, RMB 703,162 million, and RMB 768,229 million, with expected growth rates of 8.17%, 8.96%, and 9.25% respectively [3] - The forecast for profit attributable to shareholders for the same period is RMB 9,857 million, RMB 10,760 million, and RMB 11,732 million, with corresponding basic earnings per share of RMB 3.16, RMB 3.45, and RMB 3.76 [3]