XJZY(002332) Orient Securities·2024-09-01 11:11Investment Rating - The report maintains a "Buy" rating for the company with a target price of 12.54 CNY based on a 19x P/E ratio for 2024 [2][4]. Core Views - The company's performance in the first half of 2024 shows stable revenue growth and improved profitability, with total revenue of 2.138 billion CNY (up 0.93% year-on-year) and a net profit of 340 million CNY (up 12.56% year-on-year) [1][2]. - The impact of centralized procurement is gradually diminishing, allowing the formulation segment to enter a new growth cycle, with sales revenue of 1.215 billion CNY (up 10.6% year-on-year) in the first half of 2024 [1]. - The raw material segment faces short-term pressure but is expected to maintain high growth in the long term due to new production capacity advantages [1]. Financial Summary - The company reported a total revenue of 4.587 billion CNY for 2024E, with a year-on-year growth of 11.2% [3]. - The gross margin is projected to improve to 55.0% in 2024E, up from 52.9% in 2023A [3]. - The net profit attributable to the parent company is expected to reach 657 million CNY in 2024E, reflecting a year-on-year growth of 16.6% [3].