Investment Rating - The report assigns a "Buy" investment rating for the company Baiyang Pharmaceutical (301015) [1]. Core Insights - The company is expected to achieve dual improvements in performance and valuation through a strategy of "internal growth + external expansion" in brand operations. The brand operation business has shown a compound annual growth rate (CAGR) of approximately 21% from 2018 to 2023, and the acquisition of a 60.2% stake in Baiyang Pharmaceutical is projected to contribute to a similar revenue growth rate of around 21% from 2023 to 2026 [2][4][15]. Summary by Sections Brand Operations - Baiyang Pharmaceutical has established a strong brand operation business, with key products including the Dical series calcium tablets and Hailu eye drops. The revenue from brand operations accounted for about 58% of total revenue in 2023, with a CAGR of approximately 21% from 2018 to 2023 [2][4][18]. - The Dical series generated revenue of 1.897 billion yuan in 2023, reflecting a year-on-year growth of 17%. Hailu eye drops achieved revenue of 640 million yuan, with a significant year-on-year increase of 50% [19][20]. OTX Business Growth - The integration of Baiyang Pharmaceutical is expected to drive rapid growth in the OTX business. The company acquired Baiyang Pharmaceutical for a total transaction price of 880 million yuan, which is anticipated to enhance the product matrix and revenue streams [22][25]. Wholesale and Retail Business - The wholesale business has seen a contraction, with revenue of 2.774 billion yuan in 2023, down 19% year-on-year. However, the pace of contraction is expected to slow down as the company focuses on improving operational quality [5][11]. - The retail business, primarily operated through Baiyang Health Pharmacy, has maintained a stable revenue stream, with a CAGR of approximately 12% from 2018 to 2023 [5][11]. Financial Projections - The company forecasts revenues of 8.331 billion yuan, 9.402 billion yuan, and 10.695 billion yuan for 2024, 2025, and 2026, respectively, with year-on-year growth rates of 10%, 13%, and 14%. The projected net profits for the same years are 850 million yuan, 1.057 billion yuan, and 1.309 billion yuan, reflecting growth rates of 30%, 24%, and 24% [3][4][28].
百洋医药：公司首次覆盖报告：品牌运营“内生增长+外延扩张”双驱动，公司有望业绩&估值双提升