ZZPZH(SH:600436) Haitong Securities·2024-07-29 08:31Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2][9]. Core Views - The company reported a revenue of 5.65 billion yuan for the first half of 2024, representing a year-on-year growth of 11.99%, and a net profit attributable to the parent company of 1.72 billion yuan, up 11.61% year-on-year [6]. - The price of natural cow bile has significantly increased, impacting profit margins, but the opening of import trials is expected to gradually alleviate cost pressures [6]. - The company is advancing state-owned enterprise reforms and implementing market-oriented incentive mechanisms to enhance internal motivation [6]. - The dual growth strategy of "pharmaceuticals + non-pharmaceuticals" is being optimized through improved marketing models [6]. - The company has launched a "Quality Improvement and Efficiency Enhancement" action plan for 2024, focusing on maintaining prices, optimizing key products, and enhancing brand presence [7]. Financial Summary - The company’s revenue is projected to grow from 10.06 billion yuan in 2023 to 13.69 billion yuan by 2026, with a compound annual growth rate (CAGR) of approximately 10.4% [8][13]. - The net profit is expected to increase from 2.80 billion yuan in 2023 to 4.02 billion yuan in 2026, reflecting a CAGR of about 12.9% [9][13]. - The gross margin is anticipated to improve from 46.8% in 2023 to 49.5% by 2026 [8][13]. - The earnings per share (EPS) is projected to rise from 4.64 yuan in 2023 to 6.66 yuan in 2026 [8][13]. Valuation - The company is assigned a price-to-earnings (P/E) ratio of 35-45x for 2024, leading to a fair value range of 182.00 to 234.00 yuan per share [9][12].