Core Viewpoint - 九州通's stock performance on October 23 showed no change, with a trading volume of 116 million yuan, indicating a stable market position despite fluctuations in financing activities [1] Financing Summary - On October 23, 九州通 had a financing buy-in amount of 9.31 million yuan and a financing repayment of 16.99 million yuan, resulting in a net financing outflow of 7.68 million yuan [1] - The total financing and securities lending balance for 九州通 as of October 23 was 721 million yuan, with the financing balance at 714 million yuan, accounting for 2.83% of the circulating market value, which is below the 30th percentile of the past year [1] - In terms of securities lending, 九州通 repaid 181,700 shares and sold 11,000 shares on October 23, with a selling amount of 55,100 yuan, while the remaining securities lending volume was 1.37 million shares, with a balance of 6.88 million yuan, exceeding the 90th percentile of the past year [1] Business Overview - 九州通, established on March 9, 1999, and listed on November 2, 2010, is based in Wuhan, Hubei Province, and operates in six main business areas: digital pharmaceutical distribution and supply chain, general brand promotion, pharmaceutical manufacturing and OEM, retail and franchise, digital logistics and supply chain solutions, and healthcare and technology value-added services [1] - The revenue composition of 九州通's main business includes: distribution segment 95.94%, industrial segment 1.96%, retail segment 1.84%, healthcare segment 0.17%, and other segments 0.08% [1] Financial Performance - As of June 30, 九州通 reported a total of 41,700 shareholders, a decrease of 12.92% from the previous period, with an average of 120,824 circulating shares per shareholder, an increase of 14.84% [2] - For the first half of 2025, 九州通 achieved an operating income of 81.11 billion yuan, a year-on-year increase of 5.10%, and a net profit attributable to shareholders of 1.45 billion yuan, reflecting a year-on-year growth of 19.70% [2] Dividend Information - 九州通 has cumulatively distributed dividends of 5.27 billion yuan since its A-share listing, with 2.91 billion yuan distributed over the past three years [3] Institutional Holdings - As of June 30, 2025, Hong Kong Central Clearing Limited was the seventh largest circulating shareholder of 九州通, holding 90.25 million shares, an increase of 8.74 million shares from the previous period [3]

Core Viewpoint - 九州通 has shown stable financial performance with a slight increase in revenue and net profit, while its financing activities indicate a low level of borrowing compared to historical data [1][2]. Group 1: Financial Performance - As of June 30, 九州通 reported a revenue of 81.11 billion, representing a year-on-year growth of 5.10% [2]. - The net profit attributable to shareholders for the same period was 1.446 billion, reflecting a year-on-year increase of 19.70% [2]. - Cumulative cash dividends since the A-share listing amount to 5.267 billion, with 2.911 billion distributed over the past three years [3]. Group 2: Shareholder and Market Activity - As of June 30, 九州通 had 41,700 shareholders, a decrease of 12.92% from the previous period [2]. - The average number of circulating shares per shareholder increased by 14.84% to 120,824 shares [2]. - The financing balance as of September 24 was 7.55 billion, accounting for 3.03% of the market capitalization, which is below the 30th percentile of the past year [1]. Group 3: Trading and Borrowing Activities - On September 24, 九州通 had a net financing outflow of 1.1055 million, with a total financing and securities balance of 760 million [1]. - The company experienced a high level of short selling, with a borrowing balance of 5.5275 million, exceeding the 90th percentile of the past year [1].

Core Viewpoint - The pharmaceutical distribution industry in China is experiencing a significant divergence in performance between regional and national companies, influenced by ongoing healthcare reforms and market dynamics. Group 1: Performance of Regional Companies - Liuyao Group, a leading regional pharmaceutical distributor, reported a decline in both revenue and net profit for the first half of 2025, with revenue at 10.30 billion yuan, down 3.21% year-on-year, and net profit at 429 million yuan, down 7.52% [3] - The decline in Liuyao Group's performance is attributed to stricter control over drug expenditures by medical institutions and the impact of centralized procurement policies, leading to reduced sales and profit margins [3][4] - Other regional companies, such as Renmin Tongtai, also faced challenges, with total revenue of 5.15 billion yuan and a significant drop in wholesale business revenue due to intensified competition and procurement reforms [3] Group 2: Performance of National Companies - National distributor Jiuzhoutong reported a revenue increase of 5.10% year-on-year, reaching 67.63 billion yuan, and a net profit increase of 19.70% [2] - Jiuzhoutong's growth is driven by robust performance in its digital pharmaceutical distribution and supply chain business, which generated 67.63 billion yuan, up 6.04% [2] - The company also benefited from the issuance of public REITs, which added 438 million yuan to its net profit, showcasing a successful strategy to enhance cash flow and reduce reliance on traditional debt financing [8] Group 3: Strategic Shifts and Future Outlook - Liuyao Group is transitioning from a traditional distributor to a health service solution provider, aiming to create a comprehensive health ecosystem that includes production, distribution, sales, and health management [7] - North University Medicine, heavily reliant on its partnership with Peking University International Hospital, faces significant revenue and profit declines due to the expiration of its service contract, projecting a revenue drop of approximately 600 million yuan in the second half of 2025 [4] - The industry is witnessing a trend towards diversification and digital transformation, with companies exploring new marketing and service models to adapt to the competitive landscape [6][5]

Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company achieved a revenue of 81.11 billion yuan in H1 2025, representing a year-on-year increase of 5.10%. The net profit attributable to the parent company was 1.446 billion yuan, up by 19.70% [4] - The company is expected to benefit from its "Three New and Two Transformations" strategic layout, which is anticipated to drive growth potential [4] - The company has adjusted its profit forecasts for 2025-2026 and added a new forecast for 2027, expecting net profits of 2.633 billion yuan, 2.854 billion yuan, and 3.118 billion yuan for 2025, 2026, and 2027 respectively [4] Financial Performance Summary - In H1 2025, the company's gross margin was 7.56%, a decrease of 0.35 percentage points, while the net margin increased by 0.25 percentage points to 1.87% [4] - The company's digital pharmaceutical distribution and supply chain business generated revenue of 67.634 billion yuan, up by 6.04% [5] - The company has seen a steady growth in its logistics supply chain solutions, which are expected to enhance operational performance [6] Financial Forecasts - The company’s projected revenues for 2025, 2026, and 2027 are 161.17 billion yuan, 172.66 billion yuan, and 185.53 billion yuan respectively, with year-on-year growth rates of 6.2%, 7.1%, and 7.5% [8] - The projected earnings per share (EPS) for 2025, 2026, and 2027 are 0.52 yuan, 0.57 yuan, and 0.62 yuan respectively [8] - The price-to-earnings (P/E) ratios for 2025, 2026, and 2027 are expected to be 10.1, 9.3, and 8.5 respectively [8]

Group 1 - The core viewpoint of the news is that Jiuzhoutong has shown stable financial performance with a slight increase in revenue and net profit, while also experiencing changes in stockholder dynamics and financing activities [2][3]. Group 2 - As of June 30, Jiuzhoutong reported a revenue of 81.11 billion, representing a year-on-year growth of 5.10%, and a net profit attributable to shareholders of 1.446 billion, which is a 19.70% increase compared to the previous year [2]. - The company has a total of 41,700 shareholders, a decrease of 12.92% from the previous period, while the average circulating shares per person increased by 14.84% to 120,824 shares [2]. - Jiuzhoutong has cumulatively distributed dividends of 5.267 billion since its A-share listing, with 2.911 billion distributed in the last three years [3]. - As of June 30, 2025, Hong Kong Central Clearing Limited is the seventh largest circulating shareholder, holding 90.2499 million shares, an increase of 8.7397 million shares from the previous period [3]. Group 3 - On August 26, Jiuzhoutong's stock price remained unchanged at 0.00%, with a trading volume of 319 million [1]. - The financing buy-in amount on that day was 38.9818 million, while the financing repayment was 19.9517 million, resulting in a net financing buy-in of 19.03 million [1]. - The total balance of margin trading and securities lending for Jiuzhoutong reached 642 million, with the financing balance accounting for 2.32% of the circulating market value, which is below the 20th percentile level over the past year [1]. - In terms of securities lending, Jiuzhoutong repaid 3,300 shares and sold 191,700 shares, with a selling amount of 1.0428 million, while the remaining securities lending volume was 912,600 shares, exceeding the 90th percentile level over the past year [1].