TASLY(SH:600535) INDUSTRIAL SECURITIES·2024-08-11 02:31Investment Rating - The report assigns an "Accumulate" rating for the company [5]. Core Views - Tianshili Group plans to transfer 74,697,501 shares, representing 5% of the total share capital, to Guoxin Investment at a price of RMB 14.85 per share, totaling RMB 1.11 billion [2]. - On August 4, 2024, Tianshili Group and its concerted parties signed a share transfer agreement with China Resources Sanjiu, which intends to acquire 418,306,002 shares, accounting for 28% of the total share capital, at the same price of RMB 14.85 per share, amounting to RMB 6.212 billion [2]. - Tianshili is a leading player in the innovative Chinese medicine sector, with a strong focus on R&D, having invested 17.73% of its pharmaceutical industrial revenue in R&D in 2023. The company has 98 products in its pipeline, including 25 modern Chinese medicine products [2][3]. - The share transfer price represents a 5.47% premium over the closing price on August 2, 2024, with a corresponding valuation of RMB 22.185 billion and a PE ratio of 20.71 times based on the 2023 net profit [2]. - The partnership with China Resources Sanjiu is expected to enhance Tianshili's operational efficiency and product development capabilities [3]. Financial Summary - The company’s projected net profit for 2024-2026 is expected to be RMB 1.192 billion, RMB 1.325 billion, and RMB 1.474 billion, reflecting year-on-year growth rates of 11.3%, 11.1%, and 11.3% respectively [5][6]. - The revenue forecast for the same period is RMB 9.063 billion, RMB 9.524 billion, and RMB 10.018 billion, with growth rates of 4.5%, 5.1%, and 5.2% respectively [6]. - The gross margin is projected to improve slightly from 66.8% in 2023 to 67.6% in 2026 [6]. - The company’s PE ratio is expected to decrease from 20.0 in 2023 to 14.5 in 2026, indicating an improving valuation [6].