KPC(600422) 国金证券·2025-04-29 02:02Investment Rating - The report maintains a "Buy" rating for the company, indicating a positive outlook for future performance [4]. Core Viewpoints - The company experienced a revenue decline of 16.5% year-on-year in Q1 2025, with total revenue reaching 1.61 billion RMB and a net profit of 90 million RMB, down 31.1% year-on-year [2]. - The integration with China Resources Sanjiu is in its final phase, and while short-term performance is under pressure due to channel transformation, there are expectations for improvement as new procurement standards are implemented in Q2 [2][4]. - The company is focusing on brand development and enhancing terminal coverage, particularly for key products like "Kunzhong Medicine 1381" and "777 Xuesaitong Soft Capsules," which are expected to see healthy growth [3]. Summary by Sections Performance Analysis - In Q1 2025, the company reported a revenue of 1.61 billion RMB, a decrease of 16.5% year-on-year, and a net profit of 90 million RMB, down 31.1% year-on-year [2]. - The decline is attributed to multiple factors, including channel transformation and the ongoing integration with China Resources Sanjiu [2]. Brand Development - The company is committed to its brand strategy, focusing on key products to strengthen its position as a leading national medicine brand [3]. - The launch of new packaging for "777 Xuesaitong" is expected to enhance brand recognition and drive sales growth [3]. Profit Forecast and Valuation - The company is projected to achieve net profits of 740 million RMB, 893 million RMB, and 1.072 billion RMB for the years 2025, 2026, and 2027, respectively, reflecting year-on-year growth rates of 14%, 21%, and 20% [4]. - The earnings per share (EPS) are expected to be 0.98 RMB, 1.18 RMB, and 1.42 RMB for the same years, with corresponding price-to-earnings (PE) ratios of 17, 14, and 12 [4].