Fangsheng Pharmaceutical(603998) 东吴证券·2024-11-01 18:30Investment Rating - The report maintains a "Buy" rating for the company [1] Core Views - The company achieved a revenue of 1.348 billion yuan in the first three quarters of 2024, representing a year-on-year growth of 10.95%, with a net profit attributable to shareholders of 228 million yuan, up 60.66% [2] - The performance in Q3 2024 was particularly strong, with revenue reaching 438 million yuan, a 21.69% increase, and a net profit of 91 million yuan, reflecting a remarkable growth of 158.74% [2] - The company continues to focus on the innovation of traditional Chinese medicine, with a significant increase in profitability, as evidenced by a gross margin of 73.26% in Q3 2024, up 4.27 percentage points year-on-year [4] Revenue and Profitability - For the first three quarters of 2024, the company's industrial revenue reached 1.239 billion yuan, a year-on-year increase of 14.31%, with a gross margin improvement of 3.13 percentage points to 76.42% [3] - Cardiovascular drugs showed exceptional performance, generating 381 million yuan in revenue, a 41.28% increase, with a gross margin of 81.57% [3] - The orthopedic drugs segment achieved revenue of 298 million yuan, up 11.03%, with significant growth in specific products [3] Financial Forecasts - The report adjusts the forecast for net profit attributable to shareholders for 2024 from 242 million yuan to 279 million yuan, with estimates for 2025 and 2026 remaining at 312 million yuan and 396 million yuan, respectively [4] - The corresponding price-to-earnings ratios for 2024, 2025, and 2026 are projected at 19, 17, and 13 times [4] Market Data - The closing price of the company's stock is 12.09 yuan, with a market capitalization of approximately 5.309 billion yuan [6] - The company has a price-to-book ratio of 3.33 [6]