DEEJ(SZ:000423) Xin Lang Cai Jing·2025-12-22 11:52Core Viewpoint - Dong-E E-Jiao has confirmed its absence from the current bull market, with a year-to-date decline of 18% as of December 22, 2025. The company needs to identify new growth points, such as E-Jiao paste, male products, and international expansion, to regain momentum [1][12][13]. Stock Performance - As of December 22, 2025, Dong-E E-Jiao's stock closed at 49.25 yuan, reflecting a total market capitalization of 31.72 billion yuan. The stock has seen an 18% decline since the beginning of the year, contrasting sharply with the overall A-share market, where over 4,300 stocks recorded positive gains [2][14]. - The company has initiated a share buyback plan, intending to use 100 million to 200 million yuan to repurchase shares at a maximum price of 72.08 yuan per share. This is expected to involve the repurchase of approximately 138,730 to 277,470 shares, representing 0.22% to 0.43% of the total share capital [2][15]. Dividend Policy - Dong-E E-Jiao plans to distribute a cash dividend of 12.69 yuan per 10 shares, totaling approximately 817 million yuan, which indicates a high payout ratio. From 2020 to 2024, the company has consistently maintained a high dividend payout ratio, with a total cash dividend of 1.96 billion yuan in 2020, increasing to 15.55 billion yuan in 2024 [3][15][16]. Historical Context - Dong-E E-Jiao was once regarded as the "Moutai of medicine," experiencing a long-term bull market. However, after a series of price increases that led to a disconnect between product pricing and consumer demand, the company faced significant challenges, including a net profit loss of 455 million yuan in 2019 [4][18]. - The leadership transition from Qin Yufeng to Gao Dengfeng in 2020 marked a shift in strategy, with a renewed focus on E-Jiao paste, which has seen significant sales growth due to favorable policy changes [6][19][20]. Recent Developments - The company has launched new products targeting male consumers, such as the "Royal Weichang 1619" brand, and has made strategic acquisitions in the male health supplement sector [9][22]. - Dong-E E-Jiao is also expanding its international presence, having acquired Huaren Pharmaceutical Trading (Hong Kong) Co., Ltd. and established partnerships in Southeast Asia, although overseas revenue remains a small portion of total income [10][24].