DEEJ(SZ:000423) Guotou Securities·2024-08-22 14:38Investment Rating - The investment rating for the company is "Buy - A" with a 6-month target price of 55.75 CNY [5][8]. Core Views - The company's core products are experiencing healthy growth through multiple sales channels, and it has initiated mid-term dividend payments to reward investors [3][7]. - The performance for the first half of 2024 met expectations, with significant year-on-year growth in revenue and net profit [3][4]. - The company has shown continuous improvement in profitability, with substantial increases in gross and net profit margins [4]. Financial Performance Summary - For the first half of 2024, the company achieved operating revenue of 2.748 billion CNY, a year-on-year increase of 26.80%, and a net profit attributable to shareholders of 738 million CNY, up 39.03% [2]. - The revenue from the core product, Ejiao and its series, reached 2.551 billion CNY, growing 32.52% year-on-year, while other pharmaceutical and health products saw a decline of 11.91% [3]. - The overall gross margin for the first half of 2024 was 73.54%, an increase of 3.20 percentage points year-on-year, with the gross margin for Ejiao products at 75.36% [4]. Dividend Policy - The company announced its first mid-term dividend, planning to distribute 11.44 CNY per 10 shares, with an expected total cash dividend amounting to 737 million CNY, representing 99.77% of the net profit for the first half of 2024 [7]. Future Projections - Revenue projections for 2024 to 2026 are estimated at 5.586 billion CNY, 6.573 billion CNY, and 7.553 billion CNY, respectively, with net profits expected to be 1.437 billion CNY, 1.699 billion CNY, and 1.957 billion CNY [8][9].