ZZPZH(600436) 国海证券·2024-10-22 23:30Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [2][7]. Core Insights - The company has shown a recovery in profit growth in Q3 2024, with a year-on-year increase in revenue of 11.19% to 8.45 billion yuan and a net profit increase of 11.73% to 2.687 billion yuan [3][4]. - The gross margin for the liver disease medication remained stable at 68.23%, while the overall gross margin decreased by 4.32% year-on-year to 46.87% [4]. - The establishment of an academic workstation led by a renowned expert signifies a commitment to innovation and collaboration in traditional Chinese medicine [4]. Financial Performance Summary - For the first three quarters of 2024, the company reported: - Revenue: 8.45 billion yuan (yoy +11.19%) - Net profit: 2.687 billion yuan (yoy +11.73%) - Non-recurring net profit: 2.715 billion yuan (yoy +11.25%) [3][4]. - In Q3 2024 alone: - Revenue: 2.8 billion yuan (yoy +9.60%) - Net profit: 965 million yuan (yoy +11.73%) - Non-recurring net profit: 964 million yuan (yoy +11.66%) [3][4]. Market Performance - The company's stock performance over different time frames: - 1 Month: +20.4% - 3 Months: +4.7% - 12 Months: +2.2% - Compared to the CSI 300 index, which had returns of +22.9% (1M), +11.2% (3M), and +12.1% (12M) [4]. Earnings Forecast - Projected revenues for 2024, 2025, and 2026 are 11.206 billion yuan, 12.478 billion yuan, and 13.931 billion yuan, respectively, with corresponding net profits of 3.071 billion yuan, 3.557 billion yuan, and 4.125 billion yuan [7][8]. - The report anticipates a steady growth rate of approximately 11% for revenue and 10-16% for net profit over the next few years [8].