Investment Rating - The report maintains a "Recommended" rating for China Resources Sanjiu (000999) [1] Core Views - The company achieved an annual revenue of 27.617 billion RMB in 2024, representing a year-on-year increase of 11.63%, with a net profit attributable to shareholders of 3.368 billion RMB, up 18.05% year-on-year [3] - The CHC (Consumer Health Care) business is expected to continue its steady growth, contributing significantly to overall performance [5] - The prescription drug business has shown resilience, with a revenue increase of 15.04% year-on-year [5] - Strategic acquisitions, including the integration of Kunming Pharmaceutical Group and Tian Shi Li, are expected to enhance the company's capabilities in traditional Chinese medicine and chronic disease management [5] Summary by Sections Historical Performance - The company has shown a fluctuating performance over the past years, with a notable increase in revenue and profit in recent quarters [2] Financial Forecast - Projected revenues for 2025, 2026, and 2027 are 30.297 billion RMB, 33.540 billion RMB, and 37.455 billion RMB, respectively, with year-on-year growth rates of 9.71%, 10.70%, and 11.67% [5][7] - Expected net profits for the same years are 3.888 billion RMB, 4.389 billion RMB, and 4.942 billion RMB, with growth rates of 15.46%, 12.87%, and 12.60% [5][7] - The report indicates a PE ratio of 14, 12, and 11 for the years 2025, 2026, and 2027, respectively [5] Business Segments - The CHC business generated 12.482 billion RMB in revenue in 2024, growing 14.13% year-on-year, with a strong market position in self-diagnosis products [5] - The prescription drug segment achieved 6.006 billion RMB in revenue, reflecting a strategic focus on enhancing medical value and commercial capabilities [5] - The integration of Kunming Pharmaceutical Group and the acquisition of Tian Shi Li are aimed at strengthening the company's product pipeline and market presence in traditional Chinese medicine [5]