DEEJ(SZ:000423) Huafu Securities·2024-08-23 01:00Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 20% relative to the market benchmark index within the next six months [10]. Core Insights - The company achieved a revenue of 2.748 billion yuan in H1 2024, representing a year-on-year growth of 26.8%, and a net profit attributable to shareholders of 738 million yuan, up 39.03% year-on-year [2]. - The company has initiated its first mid-term dividend, with a payout ratio of 99.77%, distributing 11.44 yuan per 10 shares, totaling 737 million yuan [2]. - The company is advancing its "1238" development strategy, focusing on a dual-driven model of pharmaceuticals and health consumer products [2]. Financial Performance - In Q2 2024, the company reported a revenue of 1.295 billion yuan, a 17.89% increase year-on-year, and a net profit of 385 million yuan, up 28.01% year-on-year [2]. - The gross profit margin for Q2 2024 was 75.51%, an increase of 5.6 percentage points year-on-year, while the net profit margin was 29.75%, up 2.3 percentage points year-on-year [2]. - The company forecasts revenues of 5.523 billion yuan, 6.494 billion yuan, and 7.609 billion yuan for 2024, 2025, and 2026 respectively, with growth rates of 17%, 18%, and 17% [5]. Strategic Development - The company is enhancing its brand positioning as a "national treasure" in health supplements, focusing on the development of its flagship products [2]. - The company is expanding its product lines, including the "Peach Blossom Princess" series targeting younger consumers and the "Royal Enclosure 1619" series for men's health [2]. - The company is actively working on high-level evidence-based research to expand its product applications and market reach [2].