ZUO LI YAO YE(SZ:300181) KAIYUAN SECURITIES·2024-10-27 15:07Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company has shown rapid growth in revenue and profit for Q3 2024, with a year-on-year revenue increase of 39.59% to 2.045 billion yuan and a net profit increase of 46.93% to 421 million yuan [4][5] - The company is optimistic about the growth potential of its products, particularly the Wuling and Bailing series, and has adjusted its profit forecasts for 2025-2026 [4][5] Financial Performance Summary - For Q1-Q3 2024, the company achieved revenue of 2.045 billion yuan, with a net profit of 421 million yuan and a non-recurring net profit of 415 million yuan, reflecting increases of 39.59%, 46.93%, and 47.80% respectively [4] - In Q3 alone, revenue reached 617 million yuan (up 35.97%), with a net profit of 125 million yuan (up 40.61%) [4] - The gross margin for Q1-Q3 2024 was 61.61%, a decrease of 7.04 percentage points, while the net margin increased by 0.93 percentage points to 20.90% [4] - The company has seen a significant increase in sales of its Wuling series, with revenue of 1.161 billion yuan (up 24.88%) and a notable growth in traditional Chinese medicine products [5] Product Performance - The Wuling series continues to maintain high growth, with Wuling capsule sales increasing by 22.67% and Lingze tablet sales by 36.90% [5] - The company has also seen a substantial increase in the revenue from traditional Chinese medicine granules, which grew by 175.96% to 76 million yuan [5] Employee Incentives - The company has implemented a stock incentive plan, granting 1.333 million shares to 112 individuals, reflecting a commitment to align employee interests with company growth [6] - The performance targets for the incentive plan are based on net profit growth rates of no less than 30%, 66%, and 110% for the years 2025-2027 [6]