一季度实现良好开局，研发进度加速推进

Investment Rating - The report maintains a "Buy" rating for East China Medicine (000963 SZ) [2] Core Views - East China Medicine achieved revenue of RMB 10 411 billion in Q1 2024, a year-on-year increase of 2 93% Net profit attributable to the parent company was RMB 862 million, up 14 18% year-on-year, and adjusted net profit was RMB 838 million, up 10 66% year-on-year [2] - The medical aesthetics segment showed strong growth, with revenue reaching RMB 630 million, a year-on-year increase of 25 30% Domestic subsidiary Sinclair Aesthetics achieved revenue of RMB 257 million, up 22 65% year-on-year and 13 38% quarter-on-quarter [2] - The industrial microbiology segment grew by 23 00% year-on-year, while the pharmaceutical commercial segment saw a slight decline of 1 86% in revenue [2] - R&D progress is rapid, with significant milestones achieved, including the approval of HDM1005 for weight management and type 2 diabetes in China, and the conditional approval of Zevor-cel for multiple myeloma [2] Financial Performance - Core subsidiary Sino-American East China achieved revenue of RMB 3 399 billion, up 10 53% year-on-year, and net profit of RMB 751 million, up 11 67% year-on-year [2] - The pharmaceutical commercial segment generated revenue of RMB 6 717 billion, down 1 86% year-on-year, but net profit increased by 1 51% to RMB 107 million [2] - R&D investment in Q1 2024 was RMB 588 million, with direct R&D expenditure of RMB 349 million, up 13 96% year-on-year [2] Earnings Forecast and Valuation - The report maintains earnings forecasts for 2024-2026, with expected net profits of RMB 3 36 billion (+18%), RMB 3 94 billion (+17%), and RMB 4 57 billion (+16%) respectively [3] - EPS for 2024-2026 is projected at RMB 1 92, RMB 2 25, and RMB 2 61, with corresponding P/E ratios of 16x, 13x, and 12x [3] Historical Performance - Revenue growth for 2022-2026 is projected at 9 12%, 7 71%, 9 86%, 9 73%, and 9 30% respectively [4] - Net profit growth for the same period is expected at 8 58%, 13 59%, 18 48%, 17 11%, and 16 07% [4] - ROE is forecasted to increase from 13 45% in 2022 to 15 31% in 2026 [4] Market Sentiment - The stock has received 76 "Buy" ratings in the past six months, with no "Sell" or "Reduce" ratings [6] - The market average investment recommendation score is 1 00, indicating a strong "Buy" consensus [9]