Investment Rating - The report assigns a "Recommended" rating to the company with a target price of 25.7 yuan [1]. Core Views - The report highlights that the company is focusing on the central nervous system and cardiovascular fields, with increased investment in research and development [1][6]. - The report indicates that the company has cleared risks in its finished drug business and is expected to achieve stable growth moving forward [7][8]. - The company is accelerating its innovation transformation, particularly in the fields of central nervous system and cardiovascular drugs [8][58]. Financial Summary - The company is projected to achieve total revenue of 41.59 billion yuan in 2024, with a year-on-year growth of 4.0% [2][16]. - The net profit attributable to shareholders is expected to be 7.12 billion yuan in 2024, reflecting a year-on-year increase of 15.0% [2][16]. - Earnings per share are forecasted to be 0.83 yuan in 2024, with a price-to-earnings ratio of 24 times [2][10]. Business Overview - The company has a comprehensive layout in the pharmaceutical industry, including both finished drugs and medical devices, and has established a strong presence in the domestic market [14][16]. - The finished drug business primarily focuses on cardiovascular, central nervous system, and digestive health, with a significant increase in sales in the outpatient market [21][34]. - The raw material drug and medical device businesses are also performing well, with the raw material drug revenue expected to be 8.76 billion yuan in 2024, despite a slight decline [9][21]. Innovation and R&D - The company has made significant strides in innovation, with a focus on developing new drugs for the treatment of insomnia and other conditions [58][60]. - The first innovative drug, Dazisni, has been approved and is expected to rapidly gain market share [60]. - The company is actively pursuing new drug development, with several products in various stages of clinical trials [58][59]. Investment Recommendations - The report forecasts net profits for 2025, 2026, and 2027 to be 7.8 billion, 8.8 billion, and 10.1 billion yuan respectively, with corresponding growth rates of 9.5%, 12.9%, and 15.0% [10][16]. - The current stock price corresponds to price-to-earnings ratios of 22, 20, and 17 for the years 2025, 2026, and 2027 [10].