Core Insights - 九州通 reported strong financial performance for the first three quarters of 2025, with revenue of 119.33 billion yuan, a year-on-year increase of 5.20%, and a net profit attributable to shareholders of 1.975 billion yuan, up 16.46% [1] - The company is actively implementing its "Three New and Two Digital" strategy, focusing on new products, new retail, new medical services, digitalization, and real estate securitization [1] Financial Performance - In Q3 2025, 九州通 achieved revenue of 38.22 billion yuan and a net profit of 530 million yuan, representing year-on-year growth of 5.41% and 8.46%, respectively [1] - The net profit for Q3 showed a quarter-on-quarter increase of 11.39%, while the non-recurring net profit increased by 16.49% [1] Business Development - The new product strategy has proven effective, with total brand promotion sales reaching 14.73 billion yuan in the first three quarters, driven by a 15.26% increase in pharmaceutical agency revenue [2] - The medical beauty business grew significantly, with a year-on-year increase of 45.84%, and the number of cooperative service institutions exceeding 11,500 [2] New Retail Strategy - The "Good Medicine Master" franchise plan has accelerated, with a total of 33,275 direct and franchise pharmacies by the end of Q3, and franchise store sales growing by 43.40% [2] - B2B e-commerce revenue reached 15.53 billion yuan, a year-on-year increase of 19.68%, with over 600,000 registered users on the Jiujiu platform [2] New Medical Strategy - The "Jiu Medical Clinic" membership stores exceeded 3,000, with plans to reach 10,000 in three years [3] - The introduction of over 490 new products in the supply chain has led to a 69% quarter-on-quarter increase in sales of clinic-exclusive products [3] Digitalization and REITs - 九州通 invested 229 million yuan in R&D in the first three quarters, with 1,591 technical personnel, and implemented 34 projects including AI warehouse picking and smart logistics [3] - The company's REITs project has seen a 43.28% increase since its listing, with a 100% rental rate for initial assets in Shanghai, Hangzhou, and Chongqing [3] Future Development - The chairman emphasized the commitment to deepening the "Three New and Two Digital" strategy and accelerating the development of high-margin businesses [4] - The company is exploring the replication of the REITs model for more quality warehouse assets to optimize its capital structure [4]

Financial Performance - In the first three quarters of 2025, the company achieved revenue of 119.33 billion yuan (+5.20% year-on-year) and a net profit attributable to shareholders of 1.98 billion yuan (+16.46%) [1] - For Q3 2025, revenue was 38.22 billion yuan (+5.41%), with a net profit attributable to shareholders of 530 million yuan (+8.46%) [1] - The company's cash flow from operating activities improved, with a net increase of 341 million yuan compared to the same period last year, primarily due to enhanced collection of accounts receivable [1] Strategic Initiatives - The company is deepening its "Three New, Two Transformations" strategy, focusing on new products, new retail, new medical services, and digitalization [2] - The CSO business generated revenue of 14.73 billion yuan in the first three quarters, with pharmaceutical sales of 8.74 billion yuan (+15.26%) [2] - The number of self-operated and franchised pharmacies reached 33,275, with sales revenue from franchise pharmacies at 5.40 billion yuan (+43.40%) [2] - The "Nine Medical Clinics" membership stores reached 3,000, with a target of 10,000 in three years, and over 490 new products introduced in the first three quarters [2] - R&D investment in Q1-Q3 2025 was 229 million yuan, with 1,591 technical personnel, and 34 digital projects implemented [2] Market Position and Valuation - The company maintains a leading position in the out-of-hospital distribution sector, with a projected net profit attributable to shareholders of 2.69 billion yuan, 2.82 billion yuan, and 3.11 billion yuan for 2025-2027, corresponding to a PE ratio of 10, 9, and 8 times [3] - The company is rated as a "Buy" due to its improving cash flow and market leadership [3] Real Estate Securities - The public REIT "Jiuzhoutong R" was successfully listed in February 2025, raising 1.16 billion yuan with a subscription multiple of 1,192 times [2] - The closing price of the Huatai Jiuzhoutong Medical REIT (508084) increased by 43.28% compared to the benchmark price, with a maximum increase of 51.81% during the period [2]

Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company has shown improvement in cash flow and continues to advance its "Three New and Two Transformations" strategy [8] - In the first half of 2025, the company achieved a revenue of 81.106 billion yuan, representing a year-on-year increase of 5.10%, and a net profit attributable to shareholders of 1.446 billion yuan, up 19.70% year-on-year [8] - The company successfully issued public REITs for pharmaceutical warehousing and logistics, contributing a net profit of 438 million yuan [8] - The report adjusts the net profit forecasts for 2025-2027 to 2.694 billion yuan, 2.818 billion yuan, and 3.108 billion yuan respectively, corresponding to a PE ratio of 10, 9, and 8 times [8] Financial Performance Summary - Total revenue forecast for 2023A is 150.14 billion yuan, with a projected growth of 6.92% [1] - The net profit attributable to shareholders for 2023A is forecasted at 2.174 billion yuan, with a year-on-year growth of 4.27% [1] - The latest diluted EPS for 2023A is estimated at 0.43 yuan per share [1] - The company’s operating cash flow is expected to increase significantly, with a net cash flow from operating activities of 6.75 billion yuan in 2025E [9]

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 7.02 CNY based on a 13x PE ratio for 2025 [2][5]. Core Insights - The company achieved a revenue of 151.81 billion CNY in 2024, reflecting a year-on-year growth of 1.1%. The net profit attributable to the parent company was 2.51 billion CNY, up 15.3% year-on-year [10]. - In Q1 2025, the company reported a revenue of 42.02 billion CNY, a 3.8% increase year-on-year, and a net profit of 970 million CNY, which is an 80.4% increase year-on-year [10]. - The CSO business showed strong competitiveness, with a revenue of 19.27 billion CNY in 2024, while the pharmaceutical industrial business grew by 21.5% to 3.01 billion CNY [10]. - The company is expanding its retail and new medical strategies, with over 29,000 franchise stores and a revenue of 5.39 billion CNY from franchise sales in 2024, marking a 54.9% increase [10]. Financial Summary - The company's projected financials for 2025 include: - Revenue: 162.73 billion CNY, a 7.2% increase year-on-year - Net profit: 2.70 billion CNY, a 7.7% increase year-on-year - Earnings per share: 0.54 CNY [3][12]. - The gross margin is expected to stabilize at 7.8% for 2025, with a net margin of 1.7% [3][12]. - The company’s total assets are projected to reach 103.29 billion CNY by 2025, with a debt-to-asset ratio of 66.1% [12].

Investment Rating - The report maintains a "Buy" rating for the company with a target price of 7.02 CNY based on a 13x PE ratio for 2025 [2][5]. Core Insights - The company achieved a revenue of 151.81 billion CNY in 2024, reflecting a year-on-year growth of 1.1%. The net profit attributable to the parent company was 2.51 billion CNY, up 15.3% year-on-year [10]. - The first quarter of 2025 saw a revenue of 42.02 billion CNY, a 3.8% increase year-on-year, and a net profit of 970 million CNY, which is an 80.4% increase year-on-year [10]. - The CSO business showed strong competitiveness, with a revenue of 19.27 billion CNY in 2024, while the pharmaceutical industrial business grew by 21.5% to 3.01 billion CNY [10]. - The company is expanding its retail and new medical strategies, with over 29,000 franchise stores and a revenue of 5.39 billion CNY from franchise sales, marking a 54.9% increase year-on-year [10]. Financial Summary - The company's projected financials for 2025 include: - Revenue: 162.73 billion CNY, a 7.2% increase from 2024 - Net profit: 2.70 billion CNY, a 7.7% increase from 2024 - Earnings per share: 0.54 CNY [3][12]. - The gross margin is expected to stabilize at 7.8% for 2025, with a net margin of 1.7% [3][12]. - The company’s market capitalization is approximately 26.57 billion CNY, with a PE ratio of 9.8 for 2025 [5][12].