CHINARES PHARMA(03320) Haitong Securities International·2025-03-27 12:31Investment Rating - The report maintains an "Outperform" rating for China Resources Pharmaceutical [3][19] Core Insights - In FY24, the company achieved revenue of CNY 257.7 billion, representing a year-on-year growth of 5.3%, with contributions from pharmaceutical manufacturing, distribution, and retail segments at 16.1%, 80.0%, and 3.9% respectively [4][15] - The gross profit margin (GPM) was 15.8%, an increase of 0.1 percentage points year-on-year, primarily driven by improvements in the pharmaceutical manufacturing segment [4][15] - The attributable net profit for FY24 was CNY 3.35 billion, a decrease of 13.1% year-on-year, mainly due to increased minority interests following the equity restructuring of China Resources Zizhu [4][15] Revenue Breakdown - Pharmaceutical Manufacturing: Revenue reached CNY 46.3 billion, up 6.6% year-on-year, with traditional Chinese medicine, chemicals, biological drugs, and nutritional supplements showing growth rates of +12.2%, +2.8%, +3.3%, and -11.8% respectively [5][16] - Distribution: Revenue was CNY 213.2 billion, reflecting a 5.5% year-on-year increase, with a stable GPM of 5.9%. The company has strengthened channel partnerships and expanded digital healthcare services [5][17] - Retail: Revenue amounted to CNY 10.1 billion, also up 5.5% year-on-year, driven by a 17% increase in high-value drug direct-to-patient (DTP) business [6][18] Financial Forecasts - Revenue forecasts for FY25 and FY26 have been slightly adjusted to CNY 278.6 billion and CNY 299.2 billion, respectively, reflecting growth rates of 7.3% and 5.8% [8][19] - Attributable net profit forecasts for FY25 and FY26 are now CNY 4.3 billion and CNY 4.8 billion, corresponding to growth rates of 27.4% and 11.8% [8][19] - The target price is set at HKD 6.97, based on a 2025 P/E ratio of 11.0x [8][19]