TASLY(SH:600535) Haitong Securities·2024-08-07 08:01Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2] Core Views - The report highlights that the entry of state-owned capital is expected to empower new development, with continuous strengthening of innovation and research capabilities in traditional Chinese medicine [6][7] - The company has a robust pipeline of innovative products, with 98 products under research as of the end of 2023, including 25 modern traditional Chinese medicine products and 18 class 1 innovative drugs [7] - The financial forecast indicates a significant recovery in net profit, with expected figures of 1.18 billion yuan, 1.30 billion yuan, and 1.39 billion yuan for 2024, 2025, and 2026 respectively, reflecting year-on-year growth rates of 10.2%, 10.1%, and 7.1% [8][11] Summary by Sections Investment Highlights - The company announced a share transfer agreement on August 4, where China Resources Sanjiu acquired 418 million shares, representing 28% of the total share capital, at a price of 14.85 yuan per share, totaling 6.212 billion yuan [6] - The integration into the China Resources system is expected to enhance resource synergy and improve the overall efficiency of the traditional Chinese medicine industry [7] Financial Performance - The company's revenue for 2023 is reported at 8.674 billion yuan, with a slight year-on-year increase of 0.4% [8] - The gross profit margin is projected to remain stable, with figures of 66.8% for 2023 and slightly decreasing to 66.2% in 2024 [11] - The earnings per share (EPS) are expected to rise from 0.72 yuan in 2023 to 0.79 yuan in 2024, indicating a positive trend in profitability [11] Research and Development - The company invested 17.73% of its pharmaceutical industrial revenue into research and development in 2023, showcasing its commitment to innovation [7] - The report emphasizes the company's leading position in the innovative research and development of traditional Chinese medicine, with a diverse pipeline that supports long-term growth [7][8]