ZMC(600216) Huaxin Securities·2024-08-15 08:38Investment Rating - The report maintains a "Buy" investment rating for Zhejiang Medicine Co., Ltd. [2] Core Views - The antibiotic product line of Zhejiang Medicine is continuously expanding, with recent approvals for new products enhancing its market position [1][2] - The company has a strong focus on the research and production of quinolone and resistant antibiotics, establishing an integrated supply chain from raw materials to formulations, and has received overseas market certifications [1] - The approval of injectable daptomycin (0.5g) and the raw material drug teicoplanin indicates the company's commitment to expanding its antibiotic offerings [1] - The price increase of vitamin E (VE) due to supply tightening and incidents affecting production is expected to enhance the company's profitability [1] Financial Summary - The company’s revenue for 2023 is projected at 7.794 billion yuan, with expected growth rates of 8.0% in 2024, 12.4% in 2025, and 3.1% in 2026 [4] - The net profit attributable to shareholders is forecasted to be 430 million yuan in 2023, increasing to 852 million yuan in 2024, 1.4 billion yuan in 2025, and 1.537 billion yuan in 2026 [4] - The earnings per share (EPS) are expected to rise from 0.45 yuan in 2023 to 1.60 yuan in 2026, reflecting the company's improving profitability [4] - The report anticipates a gradual increase in the company's profitability as it adds new antibiotic varieties and benefits from price increases in its vitamin products [2][4]