YILING PHARMACEUTICAL(SZ:002603) 光大证券研究·2025-11-01 00:05Core Viewpoint - The company reported a slight revenue recovery in Q3 2025, with expectations for strong performance in the flu season ahead [3][4]. Group 1: Financial Performance - For the first three quarters of 2025, the company achieved revenue, net profit attributable to shareholders, and net profit excluding non-recurring items of 5.868 billion, 1 billion, and 966 million yuan respectively, with year-on-year changes of -7.82%, +80.33%, and +90.53% [3]. - The operating cash flow reached 1.278 billion yuan, reflecting a significant year-on-year increase of 296% [3]. - Q3 2025 revenue showed a year-on-year increase of 3.78%, while net profit attributable to shareholders surged by 1265% compared to the same quarter last year [4]. Group 2: Operational Insights - The company's gross margin improved by 7.14 percentage points to 60.53%, and the net profit margin increased by 8.33 percentage points to 17.05% year-on-year, attributed to product revenue structure adjustments and a decrease in period expense ratios [4]. - The sales expense ratio decreased by 3.21 percentage points to 23.06%, indicating effective marketing reforms [4]. Group 3: R&D and Innovation - The company continues to invest in R&D, with expenses amounting to 544 million yuan, representing 9.27% of revenue, an increase of 0.29 percentage points year-on-year [5]. - Several innovative traditional Chinese medicine products have been approved or are in the pipeline, including treatments for allergic rhinitis and chronic cholecystitis [5]. - In chemical drug development, four innovative products are in clinical stages, with multiple others in preclinical research [5].