ZUO LI YAO YE(300181) 申万宏源·2024-07-31 02:31Investment Rating - The report maintains a "Buy" rating for the company [7][11]. Core Insights - The company has demonstrated significant growth in its core products, with a notable increase in sales revenue for the first half of 2024, reaching 1.428 billion yuan, a year-on-year growth of 41.21% [11]. - The company's net profit attributable to shareholders for the same period was 296 million yuan, reflecting a year-on-year increase of 49.78% [11]. - The report highlights the successful market expansion of the company's core products, particularly the Wuling series, which saw sales revenue of 836 million yuan, a 29.15% increase year-on-year [6][11]. Financial Performance Summary - For the first half of 2024, the company reported a revenue of 1.428 billion yuan, with a year-on-year growth rate of 41.21% [11]. - The net profit attributable to shareholders for the same period was 296 million yuan, marking a 49.78% increase compared to the previous year [11]. - The company’s sales expenses ratio has been decreasing, indicating improved operational efficiency, with Q2 sales expenses ratio at 31.47%, down from 41.09% in the same quarter last year [11]. Product Development and Market Strategy - The company is leveraging its core products' inclusion in the National Essential Medicines List to enhance market penetration [6]. - The Wuling series and the newly approved Bailing capsules are expected to drive future growth, with the latter anticipated to create a second growth curve for the company [7]. - The company’s participation in centralized procurement initiatives is expected to enhance its competitive position in the market [12]. Earnings Forecast and Valuation - The report revises the earnings forecast for the company, projecting net profits of 550 million yuan for 2024, 656 million yuan for 2025, and 751 million yuan for 2026, with corresponding year-on-year growth rates of 43.7%, 19.3%, and 14.4% respectively [7][14]. - The price-to-earnings (PE) ratios for the forecasted years are set at 18x for 2024, 15x for 2025, and 13x for 2026 [7].