Core Insights - The company faced revenue pressure but significantly improved profitability, with a 2024 revenue of 4.001 billion yuan (down 2.98% year-on-year) and a net profit of 397 million yuan (down 29.46% year-on-year) [1] - The company reported a gross margin of 57.49% for 2024, an increase of 4.61 percentage points, attributed to a higher proportion of high-margin formulations and optimized raw material costs [1] Revenue Breakdown - In 2024, the formulation sales revenue was 2.415 billion yuan (up 6.02% year-on-year), with significant growth in anesthetic muscle relaxants (up 55%) and respiratory products (up 31%), while generic drug formulation revenue decreased by 19% [2] - Raw material and intermediate revenue fell to 1.547 billion yuan (down 13.4% year-on-year), primarily due to intensified competition and price declines in the non-standard market [2] Growth Potential - The company has a strong pipeline with four new generic drug approvals in 2024, including the first domestic generic version of estradiol valerate tablets [3] - The company is expanding internationally, with raw materials like medroxyprogesterone acetate receiving WHO PQ certification and prednisone receiving PMDA certification in Japan [3] - Earnings per share forecasts for 2025-2027 have been adjusted to 0.69, 0.80, and 0.97 yuan, respectively, with a target price of 11.04 yuan based on a 16x P/E ratio for 2025 [3]