TIANXIN PHARMA(SH:603235) Great Wall Securities·2024-09-13 06:18Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 15% relative to the industry index within the next six months [12]. Core Views - The vitamin market is expected to continue its upward trend, with the company showing promising growth potential due to the orderly advancement of new projects [1][5]. - The company's financial performance in the first half of 2024 shows improvement, driven by a moderate recovery in vitamin demand and stable raw material prices [2][5]. Financial Summary - The company's revenue for 2022 was 2,305 million, which decreased to 1,882 million in 2023, but is projected to rise to 2,547 million in 2024, reflecting a year-on-year growth rate of 35.3% [1]. - The net profit attributable to the parent company was 622 million in 2022, dropping to 476 million in 2023, with an expected recovery to 757 million in 2024, marking a 59.0% year-on-year increase [1]. - The company's return on equity (ROE) is projected to improve from 11.2% in 2023 to 15.9% in 2024 [1]. Market and Product Insights - The company's vitamin B segment generated revenue of 891 million in the first half of 2024, with a gross margin of 48.24%, an increase of 8.37 percentage points year-on-year [2][5]. - The prices of VB1 and VB6 have stabilized and are expected to continue rising, contributing positively to the company's performance [5]. - The company is advancing multiple projects, including a 7,000-ton vitamin B5 project and a 1,000-ton vitamin A project, which are expected to enhance product structure and performance [5][6]. Future Projections - The company is projected to achieve revenues of 25.47 billion, 30.71 billion, and 35.34 billion from 2024 to 2026, with corresponding net profits of 7.57 billion, 9.20 billion, and 11.30 billion [5][6]. - The expected earnings per share (EPS) are forecasted to be 1.73, 2.10, and 2.58 for the years 2024, 2025, and 2026, respectively [5][6].