ZUO LI YAO YE(SZ:300181)2024-07-30 10:03Investment Rating - The report maintains a "Buy" rating for the company [5][13]. Core Insights - The company is positioned as a leader in the domestic medicinal mushroom pharmaceutical sector, with strong growth in core products [5]. - In the first half of 2024, the company achieved a revenue of 1.428 billion yuan, representing a year-on-year increase of 41.21%, and a net profit attributable to shareholders of 296 million yuan, up 49.78% year-on-year [5]. - The core product, Wuling Capsule, has been included in national essential drug lists, enhancing its market presence and sales [5]. Financial Performance - The company reported a significant increase in sales revenue for its core products, with Wuling series sales up 29.15% and Lingze tablets up 30.84% [5]. - The sales revenue from traditional Chinese medicine (TCM) decoction pieces increased by 57.11%, while TCM formula granules saw a remarkable growth of 256.73% [5]. - The company’s cost control measures have improved net profit margins, with a net profit margin of 20.99%, an increase of 1.05 percentage points year-on-year [5]. Future Projections - Revenue projections for 2024-2026 are set at 2.494 billion yuan, 3.103 billion yuan, and 3.747 billion yuan, respectively, with net profits expected to be 498 million yuan, 624 million yuan, and 764 million yuan [5]. - The earnings per share (EPS) are projected to be 0.71 yuan, 0.89 yuan, and 1.09 yuan for the same period, with corresponding price-to-earnings (PE) ratios of 19, 15, and 12 times [5].