DEEJ(SZ:000423) Soochow Securities·2024-08-23 16:30Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company achieved impressive performance in H1 2024, with total revenue of 2.748 billion yuan (up 26.80% year-on-year) and net profit attributable to shareholders of 738 million yuan (up 39.03%) [3] - The company declared a cash dividend of 11.44 yuan per 10 shares, totaling 737 million yuan, which accounts for 99.77% of the net profit for H1 2024 [3] - The brand strength of the company's products, particularly the Ejiao series, continues to grow, with revenue from the pharmaceutical industrial segment reaching 2.684 billion yuan (up 29.3%) in H1 2024 [3] - The company has effectively improved its profitability, with a gross margin of 74.92% (up 2.21 percentage points) and a net profit margin of 26.88% (up 1.34 percentage points) in H1 2024 [3] Financial Forecast and Valuation - The forecast for net profit attributable to shareholders for 2024-2026 has been adjusted to 14.18 billion yuan, 16.82 billion yuan, and 19.95 billion yuan, respectively, with corresponding P/E ratios of 22, 19, and 16 [4] - The total revenue is projected to reach 5.578 billion yuan in 2024, with a year-on-year growth rate of 18.29% [2][4] - The latest diluted EPS is expected to be 2.20 yuan per share in 2024, with a P/E ratio of 22.26 [2][4]