云南白药：业绩平稳增长，经营质量显著提升

Investment Rating - The investment rating for the company is "Buy-A" with a target price of 64.25 CNY over the next six months, compared to the current stock price of 53.88 CNY as of August 26, 2024 [2][7]. Core Views - The company has demonstrated stable revenue growth and significant improvement in operational quality, with a reported revenue of 20.455 billion CNY for the first half of 2024, reflecting a year-on-year increase of 0.72%, and a net profit of 3.189 billion CNY, up 12.76% year-on-year [1][6]. Summary by Sections Company Performance - In H1 2024, the pharmaceutical segment achieved revenue of 4.069 billion CNY, a growth of 9.6% year-on-year, with core products like Yunnan Baiyao aerosol spray exceeding 1.2 billion CNY in sales, growing over 30% [2]. - The health products segment reported revenue of 3.144 billion CNY, slightly down, but net profit increased by 1.7% to 1.231 billion CNY, with a gross margin improvement of 0.7 percentage points [2]. - The traditional Chinese medicine resources segment saw revenue of 0.894 billion CNY, a growth of approximately 22% year-on-year, while the provincial pharmaceutical company maintained stable revenue at 12.19 billion CNY [2]. Financial Metrics - The company reported a gross margin of 29.30% in H1 2024, an increase of 1.75 percentage points year-on-year, and a net profit margin of 15.59%, up 1.67 percentage points [6]. - Operating cash flow reached 3.262 billion CNY, a year-on-year increase of 44.84%, indicating improved cash management [6]. - The company’s projected revenues for 2024 to 2026 are 39.667 billion CNY, 41.449 billion CNY, and 43.327 billion CNY respectively, with corresponding net profits of 4.593 billion CNY, 5.070 billion CNY, and 5.537 billion CNY [7][9]. Valuation Metrics - The projected PE ratios for 2024 to 2026 are 20.9, 19.0, and 17.4 respectively, indicating a favorable valuation trend [7][9]. - The company maintains a high dividend yield, projected to increase from 2.8% in 2022 to 5.2% by 2026 [9].