TASLY(SH:600535) ZHESHANG SECURITIES·2024-08-06 02:03Investment Rating - The investment rating for the company is "Buy" [5] Core Views - The control of Tian Shi Li has changed hands to China Resources Sanjiu, with the transfer of 28% of shares at a price of RMB 14.85 per share, totaling RMB 62.12 billion [3] - This transaction solidifies Tian Shi Li's position as an innovation leader and enhances China Resources Sanjiu's status in the traditional Chinese medicine industry [3] - The collaboration is expected to leverage synergies in the traditional Chinese medicine supply chain, including cultivation, R&D, smart manufacturing, and marketing [3] - A joint venture will be established to develop a multimodal large model for traditional Chinese medicine research, integrating traditional theories with digital technology [3] - The company anticipates a resolution to existing competition issues within five years post-transaction [3] Financial Summary - The projected financials for Tian Shi Li are as follows: - Revenue for 2023 is estimated at RMB 8,674 million, with a growth of 0.42%, and expected to reach RMB 9,291 million in 2024, RMB 10,124 million in 2025, and RMB 11,030 million in 2026 [4] - Net profit attributable to the parent company is projected to be RMB 1,071 million in 2023, with a significant increase of 505.34%, reaching RMB 1,342 million in 2024, RMB 1,536 million in 2025, and RMB 1,737 million in 2026 [4] - Earnings per share (EPS) are expected to be RMB 0.72 in 2023, increasing to RMB 0.90 in 2024, RMB 1.03 in 2025, and RMB 1.16 in 2026 [4] - The price-to-earnings (P/E) ratio is projected to decrease from 20.75x in 2023 to 12.80x in 2026 [4]