WIT DYNE(000915)2024-08-04 06:03Investment Rating - The investment rating for the company is "Accumulate" [6] Core Views - The company has shown stable profit growth in H1 2024, with a revenue of 1.154 billion yuan, a year-on-year increase of 0.10%, and a net profit of 332 million yuan, up 3.12% year-on-year. The second quarter saw a revenue of 583 million yuan, a year-on-year decrease of 1.55% but a quarter-on-quarter increase of 1.89% [2][3] - The growth strategy for H2 2024 focuses on expanding the market for core products and new products through innovative marketing channels, which is expected to accelerate revenue and profit growth [2][3] Financial Performance - In H1 2024, the pharmaceutical segment generated 1.136 billion yuan in revenue, a 0.47% increase year-on-year, accounting for 98.42% of total revenue. The online channel revenue has shown significant growth [3] - The company aims for a 10% growth in revenue and net profit for the full year 2024, driven by marketing strategies and new promotional channels [3][5] Profitability - The net profit margin for H1 2024 was 27.60%, an increase of 1.36 percentage points year-on-year. The sales expense ratio decreased by 4.64%, contributing to the improved net profit margin [4] - The company expects stable gross margins and a high overall net profit margin for the year [4] Growth Forecast and Valuation - The company maintains its earnings per share (EPS) forecast for 2024-2026 at 2.85, 3.22, and 3.66 yuan per share, respectively. The PE ratio for 2024 is projected to be 9 times based on the closing price on August 2, 2024 [5][8] - The company is optimistic about the continued growth of its core product, "Yikexin," and key secondary products, which are expected to drive steady revenue growth [5]