ZMC(SH:600216) Xin Lang Cai Jing·2025-08-26 00:25Core Viewpoint - Zhejiang Medicine's 1H25 performance met market expectations, with a revenue of 4.323 billion yuan, a year-on-year decrease of 1.87%, and a net profit attributable to shareholders of 673 million yuan, corresponding to an earnings per share of 0.70 yuan, reflecting a year-on-year increase of 113.5% [1] Financial Performance - In 1H25, the life nutrition products segment generated revenue of 2.034 billion yuan, a year-on-year increase of 0.58%, with a gross margin increase of 15.41 percentage points to 54.95% [1] - The pharmaceutical segment reported revenue of 2.223 billion yuan, a year-on-year decline of 5.2%, with a gross margin decrease of 5.8 percentage points to 26.58% [1] - In 2Q25, revenue was 2.067 billion yuan, with year-on-year and quarter-on-quarter declines of 4.1% and 8.3%, respectively; net profit attributable to shareholders was 264 million yuan, with year-on-year growth of 28.5% but a quarter-on-quarter decline of 35.4% [1][2] Market Trends - Prices of vitamins A and E are gradually returning to normal levels, with recent market prices at 64 yuan/kg and 66 yuan/kg, significantly lower than the peak prices in 3Q24; average prices in 2Q25 were 73.7 yuan/kg and 104.4 yuan/kg, reflecting quarter-on-quarter declines of 34% and 23% [3] - The pharmaceutical manufacturing segment is actively addressing sales pressure and rising cost risks, with subsidiaries focusing on product quality improvement, cost reduction, and R&D advancements [3] Profit Forecast and Valuation - The profit forecast for 2025/26 remains unchanged, with the current stock price corresponding to a price-to-earnings ratio of 14.4/14.3x; the target price has been raised by 12% to 18.5 yuan, indicating a 13% upside potential [4]