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]

Group 1 - The core viewpoint of the news is that Jiuzhoutong is successfully implementing its new retail strategy, which focuses on a comprehensive online and offline service system aimed at end consumers [1] - As of now, Jiuzhoutong has nearly 30,000 franchise pharmacies, with new retail revenue expected to reach nearly 3 billion yuan in 2024 [1] - The company reported a rapid growth in sales revenue from franchise pharmacies, reaching 5.392 billion yuan in 2024, a year-on-year increase of 54.94% [1] Group 2 - In 2024, Jiuzhoutong achieved a revenue of 151.81 billion yuan and a net profit attributable to shareholders of 2.507 billion yuan, with a year-on-year revenue growth of 2.58% after excluding seasonal disease impacts [2] - The first quarter of 2025 saw Jiuzhoutong generate a revenue of 42.016 billion yuan, a 3.82% increase compared to the same period last year, with a net profit of approximately 970 million yuan, reflecting an 80.38% year-on-year growth [2] - The company’s non-recurring net profit for 2024 was 1.814 billion yuan, showing a year-on-year increase of 14.89% [2]