Investment Rating - The investment rating for the company is "Outperform the Market" [5][3][13] Core Insights - The company has experienced rapid revenue and profit growth driven by original research drugs, and this trend is expected to continue long-term [1][6] - For FY2026, the company projects a revenue growth of 10-15% year-on-year, with a mid-year revenue of 167 billion yuan, representing a 17% increase compared to the previous year [1][6] - The adjusted net profit for FY2025 was 14 billion yuan, a 39% increase year-on-year, with an adjusted net profit margin of 8.1% [2][7] Revenue Summary - The company's self-operated pharmaceutical revenue reached 143 billion yuan in FY2026, up 19% year-on-year, largely due to a 99% increase in SKU supply for B2C retail products [1][6] - E-commerce platform service revenue was 18 billion yuan, an 8% increase year-on-year, with advertising revenue growing over 10% [1][6] - The medical health and digital services segment generated 5 billion yuan, also reflecting an 8% year-on-year growth [1][6] Profit Summary - The adjusted net profit margin improved to 8.1% in FY2025, up 1.3 percentage points year-on-year, with a gross margin of 25.1% [2][7] - The company has reduced its fulfillment cost ratio to 8.2%, down 0.7 percentage points year-on-year, indicating improved operational efficiency [2][7] - For FY2026, the company anticipates a net profit growth of 20-30% year-on-year, with a mid-year profit projection of 1-21% [2][7] Financial Forecasts - Revenue projections for FY2026 to FY2028 have been adjusted to 348 billion, 379 billion, and 410 billion yuan respectively, reflecting a 4% increase from previous estimates [3][13] - The adjusted net profit forecasts for the same period are set at 25 billion, 30 billion, and 34 billion yuan, also a 6% increase from prior estimates [3][13] - The current stock price corresponds to a FY2026 price-to-earnings ratio of 37 times [3][13]