ZUO LI YAO YE(SZ:300181) China Post Securities·2024-07-12 04:30Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 20% relative to the benchmark index within the next six months [20][31]. Core Insights - The company is projected to achieve significant revenue growth, with an estimated revenue of approximately 14.26 billion yuan for the first half of 2024, representing a year-on-year increase of 41% [7]. - The net profit attributable to the parent company for the same period is expected to be between 2.95 billion and 3.10 billion yuan, reflecting a growth of 49.24% to 56.83% year-on-year [7]. - The company is experiencing robust growth in its product lines, particularly in the sales of Wu Ling capsules and Ling Ze tablets, with a notable increase in sales from traditional Chinese medicine slices [7][21]. Financial Projections - Revenue projections for 2023 to 2026 are as follows: 1,942 million yuan in 2023, 2,503 million yuan in 2024, 3,069 million yuan in 2025, and 3,725 million yuan in 2026, with growth rates of 7.61%, 28.86%, 22.60%, and 21.39% respectively [10][31]. - The net profit attributable to the parent company is forecasted to be 382.94 million yuan in 2023, increasing to 530.16 million yuan in 2024, 691.48 million yuan in 2025, and 886.49 million yuan in 2026, with growth rates of 40.27%, 38.45%, 30.43%, and 28.20% respectively [10][31]. - The earnings per share (EPS) are expected to rise from 0.55 yuan in 2023 to 1.26 yuan in 2026 [10][31]. Market Performance - The stock has shown a performance decline of 27% over the past year, with a current price of 15.55 yuan [5][17]. - The company has a total market capitalization of 10.9 billion yuan and a circulating market value of 9.3 billion yuan [18]. Company Overview - The company operates in the pharmaceutical and biotechnology sector, focusing on the development and sales of traditional Chinese medicine products [29].