Shouxiangu(SH:603896) Xiangcai Securities·2024-07-21 14:01Investment Rating - The report assigns a rating of "Accumulate" to the company, indicating a potential investment return exceeding the market benchmark index by 5% to 15% over the next 6-12 months [20][29]. Core Insights - The company has initiated a marketing revitalization plan to adapt to changes in the international environment, slow domestic consumption recovery, and the presence of numerous market products. This plan involves establishing a new digital marketing system across four dimensions: brand, product, channel, and organization [1]. - The company focuses on premium traditional Chinese medicine, particularly on products like Ganoderma lucidum and Dendrobium, and has developed a comprehensive supply chain that ensures product quality and innovation [18][31]. - The company has a unique "de-wall" technology for its Ganoderma lucidum spore powder, significantly enhancing the efficacy and nutritional content compared to conventional products [23][36]. Financial Projections - Revenue is projected to grow from 784 million in 2023 to 1,078 million by 2026, with year-on-year growth rates of -5.4%, 10.6%, 11.4%, and 11.5% respectively [4][26]. - Net profit attributable to the parent company is expected to increase from 254 million in 2023 to 376 million in 2026, with growth rates of -8.4%, 12.1%, 16.3%, and 13.4% respectively [4][26]. - The gross margin is forecasted to improve from 82.7% in 2023 to 84.8% in 2026 [4][26]. Product and Market Strategy - The company categorizes its products into four types: "Monarch" products (core competitive products), "Minister" products (sub-brands), "Assistant" products (tactical products), and "Envoy" products (supplementary products) [1]. - The marketing strategy includes a combination of direct sales and distribution, as well as online and offline integration, with a focus on price control [1][21]. - The company has established eight standardized planting bases and focuses on the cultivation and processing of over twenty types of traditional Chinese medicinal materials [21][31]. Research and Development - The company has a robust R&D team comprising 141 members, with 28 external experts, including 9 academicians, focusing on the development of proprietary high-yield varieties and quality control systems [22][36]. - The company has led or participated in the formulation of 93 various traditional Chinese medicine standards, including ISO international standards for Ganoderma lucidum and Dendrobium [22][36].