KPC(SH:600422) Soochow Securities·2024-06-10 07:30Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The acquisition plan is yet to be executed, and the company’s projected net profit for 2024-2026 is estimated at 610 million, 760 million, and 970 million yuan respectively, corresponding to PE ratios of 26, 21, and 17 times [1] - The acquisition of China Resources Shenghuo aims to resolve industry competition and establish a leader in the silver-haired health industry [3] - The core product, Xue Saitong soft capsule, is expected to become a multi-billion product following the merger, with significant market growth potential [20] Financial Projections - The company’s total revenue is projected to grow from 7,703 million yuan in 2023 to 10,990 million yuan in 2026, with a CAGR of approximately 20% from 2024 to 2028 [18][21] - The net profit attributable to the parent company is expected to increase from 445 million yuan in 2023 to 967 million yuan in 2026, reflecting a growth rate of 16.05% in 2024 and 27.72% in 2026 [18][21] - The company aims to achieve a doubling of revenue by the end of 2028, targeting an industrial revenue of 10 billion yuan [21] Strategic Planning - The company has established three business divisions: "1381" for traditional Chinese medicine, "1951" for serious medical products, and "777" for oral preparations, each with clear growth targets [21] - The strategic plan aims for "Kunzhong Medicine 1381" to reach a scale of 3.5-4 billion yuan, "777" to reach 3-3.5 billion yuan, and "KPC1951" to reach 2.5-3 billion yuan by 2028 [21]