ZUO LI YAO YE(SZ:300181) Huaan Securities·2024-10-28 00:30Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company's core product advantages are highlighted, leading to sustained high growth in performance, and the implementation of equity incentives reflects confidence in future development [1][3] Summary of Financial Performance - For the first three quarters of 2024, the company achieved operating revenue of 2.045 billion yuan, a year-on-year increase of 39.59% - The net profit attributable to the parent company was 421 million yuan, up 46.93% year-on-year, while the net profit after deducting non-recurring gains and losses was 415 million yuan, an increase of 47.80% year-on-year [1] Quarterly Performance - In Q3 2024, the company reported revenue of 617 million yuan, a year-on-year increase of 35.97% - The net profit attributable to the parent company for Q3 was 125 million yuan, up 40.61% year-on-year, and the net profit after deducting non-recurring gains and losses was 123 million yuan, an increase of 41.17% year-on-year [1] Product Performance - The core product series continues to grow rapidly, with the Wuling series revenue increasing by 24.88% year-on-year, driven by significant sales growth in Wuling capsules and Lingze tablets - The Bailing series saw a 22.14% increase in sales volume year-on-year, although sales revenue decreased by 4.89% due to price reductions from centralized procurement - The revenue from traditional Chinese medicine pieces grew by 51.24% year-on-year, and the revenue from Chinese medicine formula granules surged by 175.96% year-on-year [1][3] Equity Incentive Plan - The company plans to grant approximately 6.6 million restricted stocks to 112 incentive targets, accounting for 0.94% of the total share capital, with a grant price of 8.07 yuan per share - The performance assessment targets for unlocking the incentives require net profit growth rates of no less than 30%, 66%, and 110% for the years 2025, 2026, and 2027, respectively [2][3] Financial Forecast - The company’s revenue is projected to be 2.569 billion yuan in 2024, 3.300 billion yuan in 2025, and 4.171 billion yuan in 2026, representing year-on-year growth rates of 32.2%, 28.5%, and 26.4%, respectively - The net profit attributable to the parent company is expected to be 549 million yuan in 2024, 727 million yuan in 2025, and 958 million yuan in 2026, with growth rates of 43.3%, 32.4%, and 31.8%, respectively [3][4]