ZUO LI YAO YE(SZ:300181) Great Wall Securities·2024-09-11 06:10Investment Rating - The report maintains a "Buy" rating for the company, expecting a price increase of over 15% relative to the industry index within the next six months [8]. Core Views - The company is projected to achieve a net profit attributable to shareholders of approximately 411 to 426 million yuan for the first three quarters of 2024, representing a year-on-year increase of 43.29% to 48.52% [2]. - The company has actively repurchased shares, acquiring 2.12% of its total shares from August 13 to September 6, with a total expenditure of 204 million yuan, reflecting strong operational confidence [2]. - The core products, including Wuling Capsules and Lingze Tablets, continue to show robust growth, with significant sales increases driven by strategic marketing and product positioning [2]. Financial Summary - For 2024, the company expects to generate revenue of 2.466 billion yuan, with a year-on-year growth rate of 26.9% [3]. - The projected net profit for 2024 is estimated at 528 million yuan, reflecting a year-on-year growth of 37.8% [3]. - The company's return on equity (ROE) is expected to rise to 18.0% in 2024, indicating improved profitability [3]. - The earnings per share (EPS) is projected to reach 0.75 yuan in 2024, with a continuous upward trend in subsequent years [3]. Product and Market Strategy - The company is focusing on expanding its hospital coverage and enhancing its presence in the OTC market, utilizing a marketing strategy aimed at consumer education and product application [2]. - The Wuling Capsule, recognized as a national first-class new drug, has been recommended in 69 clinical pathways and guidelines, showcasing its established market position [2]. - The company is also developing a scientific and effective incentive plan for its employees, which is expected to further enhance operational performance [2].