DRTG(600329) 华创证券·2024-11-03 04:15Investment Rating - The report maintains a "Recommended" rating for the company, with a target price of 39.8 CNY [1][2]. Core Insights - The company has shown stable industrial growth, although its commercial segment has experienced a decline. The industrial revenue for the first three quarters of 2024 decreased by 14.5% year-on-year, while the commercial segment's revenue reached 23.3 billion CNY [1][2]. - The company is actively implementing a new marketing model that integrates online and offline sales channels, focusing on the southern market and aiming to cover 18,000 pharmacies through a refined marketing structure [1][2]. - Financial indicators remain robust, with a gross margin increase to 46.6% and a net profit margin of 11.8% for the third quarter of 2024 [1][2]. Financial Performance Summary - For the first three quarters of 2024, the company reported total revenue of 56.1 billion CNY, a decrease of 8.9% year-on-year. The net profit attributable to the parent company was 8.0 billion CNY, reflecting a decline of 3.4% [1][2]. - The company expects a net profit of 10.4 billion CNY, 12.2 billion CNY, and 14.5 billion CNY for the years 2024, 2025, and 2026 respectively, with growth rates of 5%, 18%, and 18% [1][2]. - The projected earnings per share (EPS) for 2024, 2025, and 2026 are 1.35 CNY, 1.59 CNY, and 1.88 CNY respectively, indicating a positive growth trajectory [2]. Valuation Metrics - The report provides a price-to-earnings (P/E) ratio forecast of 25 for 2024, decreasing to 21 by 2025 and further to 18 by 2026 [2]. - The price-to-book (P/B) ratio is expected to remain stable at around 4 for the next three years [2]. Market Positioning - The company is focusing on enhancing its marketing structure and professional operations, aiming to strengthen its market presence and adapt to market demands [1][2]. - The report highlights the company's commitment to academic and professional promotion strategies, which are expected to yield positive results in the long term [1][2].