General Healthy(SH:605186) Huaan Securities·2024-05-10 02:00Investment Rating - The investment rating for the company is "Buy" [3][11]. Core Views - The report highlights that the company has signed a memorandum of cooperation with Lean Company to digitize over 2,300 grassroots hospitals in Saudi Arabia and has begun small-scale supply to the joint venture [3]. - The company is expanding its strategic layout in the pharmaceutical retail market by partnering with leading industry players and internet platform companies to promote the "Smart Pharmacy" model nationwide [3]. - Revenue projections for 2024 to 2026 are estimated at 370 million, 450 million, and 550 million yuan, representing year-on-year growth of 19.2%, 22.4%, and 21.9% respectively. Net profit attributable to the parent company is expected to be 130 million, 160 million, and 190 million yuan, with growth rates of 115.7%, 20.9%, and 21.0% respectively [3]. Financial Summary - In 2023, the company achieved operating revenue of 308 million yuan, a year-on-year decrease of 4.59%, and a net profit attributable to the parent company of 60 million yuan, down 48.13% year-on-year [11]. - The company’s gross margin for 2023 was 54.82%, a decrease of 4.76 percentage points year-on-year [11]. - The financial forecast indicates that the company will have a gross margin of 56.1% in 2024, 55.0% in 2025, and 54.5% in 2026 [13][16]. Cash Flow and Profitability - The operating cash flow for 2023 was -35 million yuan, with projections of 131 million yuan in 2024, 233 million yuan in 2025, and 214 million yuan in 2026 [15]. - The report anticipates a significant increase in net profit from 60 million yuan in 2023 to 129 million yuan in 2024, reflecting a recovery in profitability [13][15].