According to the Zheshang Securities Research Report, Shanghai Pharmaceutical (601607.SH)'s revenue grew steadily in 2023, and profits were under pressure in the short term. It is optimistic about the 24-year inflection point and maintains an “gain” rating. The company continued to make efforts in innovative distribution business, deepened sales cooperation with overseas MNC, and achieved a higher growth rate than the sector as a whole. In 2023, the total number of imported products added by the company reached 29, and the CSO business revenue was 2.9 billion yuan, or about 50% by YOY. Looking ahead, the bank is optimistic about the continued and rapid expansion of the company's commercial side in high-value-added and emerging distribution businesses such as innovative distribution and non-pharmaceutical distribution, and is optimistic that the company will achieve continuous improvement in internal operating efficiency under the promotion of the North-South platform integration project. It is expected that starting in 2024, the company may usher in a commercialization window for innovative drugs. With the support of strong sales capabilities on the industrial side, the company is optimistic about the growth elasticity brought about by innovative drugs.