DEEJ(000423) ZHONGTAI SECURITIES·2024-10-10 00:46Investment Rating - The report maintains a "Buy" rating for the company, with a market price of 57.60 [1]. Core Insights - The company is expected to achieve a net profit of 11.00 to 11.75 billion yuan for the first three quarters of 2024, representing a year-on-year growth of 40% to 50% [2]. - The third quarter performance is projected to significantly exceed market expectations, with a net profit forecast of 3.62 to 4.37 billion yuan, indicating a year-on-year increase of 43% to 73% [2]. - The company aims to solidify its position as a leader in the domestic health supplement market by leveraging a dual growth model of pharmaceuticals and health consumer products [2]. - A substantial cash dividend of 11.44 yuan per 10 shares was announced, totaling 737 million yuan, which accounts for 99.77% of the net profit for the first half of 2024 [2]. Financial Forecast and Valuation - The company’s revenue is projected to grow from 58.76 billion yuan in 2024 to 81.35 billion yuan in 2026, with year-on-year growth rates of 24.62%, 20.39%, and 14.99% respectively [3]. - The net profit forecast for 2024 to 2026 is adjusted to 14.80 billion yuan, 17.82 billion yuan, and 20.92 billion yuan, with corresponding growth rates of 28.64%, 20.34%, and 17.45% [3]. - The earnings per share (EPS) is expected to increase from 1.79 yuan in 2024 to 3.25 yuan in 2026 [3]. - The price-to-earnings (P/E) ratio is projected to decrease from 32.23 in 2024 to 17.73 in 2026, indicating improving valuation metrics [3].