国药股份：母公司业绩稳健增长，投资收益下滑

Investment Rating - The report maintains a "Buy" rating for the company with a target price of RMB 43.89 [2][5]. Core Insights - The company's revenue and net profit for the first nine months of 2024 (9M24) were RMB 38.03 billion and RMB 1.48 billion, respectively, reflecting year-on-year growth of 4.1% and 1.3% [5]. - The report highlights a significant decline in investment income from joint ventures, which has impacted profit growth, but maintains that the company's long-term growth logic remains intact due to solid fundamentals and excellent financial metrics [5][6]. - The forecast for net profit for 2024-2026 is adjusted to RMB 2.20 billion, RMB 2.37 billion, and RMB 2.53 billion, representing year-on-year growth of 2.6%, 7.5%, and 6.8% respectively [5][12]. Summary by Sections Financial Performance - For 3Q24, the company's revenue was RMB 13.27 billion, with a net profit of RMB 481 million, showing year-on-year increases of 7.1% and 0.6% respectively [5]. - The company's investment income decreased by 28.8% year-on-year in 3Q24, which negatively affected overall net profit performance [5][6]. Cost and Margin Analysis - The report notes a decrease in gross margin, with 9M24 gross margin at 7.02%, down 0.72 percentage points year-on-year [6]. - The company has successfully reduced various expense ratios, with sales, management, R&D, and financial expense ratios decreasing in 9M24 compared to the previous year [6]. Valuation Metrics - The report assigns a 14x PE valuation for 2025, compared to a 10x average for comparable companies, leading to a target price of RMB 43.89 [5][12]. - The company's market capitalization is reported at RMB 25.33 billion, with a closing price of RMB 33.57 as of October 23, 2024 [3][5].