ZMC(SH:600216) SINOLINK SECURITIES·2024-08-23 02:08Investment Rating - The investment rating for Zhejiang Medicine is "Buy" (maintained) [3][7]. Core Views - The company reported a strong recovery in vitamin sales and an increase in vancomycin production, indicating a clear upward trend in performance [3]. - The revenue for the first half of 2024 reached 4.405 billion RMB, with a year-on-year growth of 11.87%, while net profit attributable to shareholders grew by 15.82% to 315 million RMB [3]. - The vitamin segment, particularly vitamins A and E, showed significant growth, with revenue of 1.735 billion RMB, up 23% year-on-year, and gross profit increasing by 47% [3]. - The antibiotic segment is expanding, with vancomycin revenue in the U.S. reaching 220 million RMB, a 28% increase year-on-year [3]. Summary by Sections Financial Performance - For the first half of 2024, the company achieved revenues of 4.405 billion RMB, with net profit attributable to shareholders at 315 million RMB, reflecting a year-on-year growth of 15.82% [3]. - The second quarter of 2024 saw revenues of 2.156 billion RMB, with net profit attributable to shareholders increasing by 29.60% to 206 million RMB [3]. Business Segments - The life nutrition products segment generated 2.02 billion RMB, growing by 24% year-on-year, while the pharmaceutical manufacturing and commercial segments each reported 5% growth, generating 1.16 billion RMB and 1.19 billion RMB, respectively [3]. - The gross profit for the life nutrition products segment was 550 million RMB, up 44% year-on-year, while the pharmaceutical manufacturing segment saw a decline in gross profit by 3% [3]. Future Outlook - The company expects vitamin prices to continue recovering, supported by production cuts from international giants like BASF and DSM [3]. - Revenue forecasts for 2024 and 2025 have been adjusted downwards by 7% and 13% to 8.8 billion RMB and 9.5 billion RMB, respectively, with net profit forecasts reduced by 29% and 36% to 700 million RMB and 900 million RMB [3].