DEEJ(000423) 开源证券·2024-12-13 07:17Investment Rating - The investment rating for the company is "Buy" (首次覆盖) [2][98]. Core Views - The company is positioned as a leading brand in health supplements, leveraging a dual growth model of "pharmaceuticals + health consumer products" to drive long-term development. The expected net profits for 2024-2026 are projected to be 14.23 billion, 17.19 billion, and 20.87 billion yuan respectively, with corresponding EPS of 2.21, 2.67, and 3.24 yuan, indicating a reasonable valuation compared to peers [7][98]. Summary by Sections 1. Company Overview - The company, established in 1952, focuses on the research, production, and sales of Ejiao and related health products. It has a strong brand presence and aims to become the most trusted health supplement leader [19][22]. 2. Focus on Ejiao Industry - The company has a comprehensive product line including Ejiao blocks, compound Ejiao syrup, and health consumer products. The market for blood-nourishing traditional Chinese medicine is growing, with the company holding a 49% market share in the Ejiao segment [8][53][57]. 3. Financial Performance - The company has shown steady revenue growth from 29.59 billion yuan in 2019 to 47.15 billion yuan in 2023, with a CAGR of 12.35%. The net profit has improved significantly from a loss of 4.44 billion yuan to a profit of 11.51 billion yuan over the same period [36][37]. 4. Product Development and Market Strategy - The company is expanding its product offerings to include health consumer products aimed at younger demographics, such as "Peach Blossom Princess" Ejiao cake and Ejiao instant powder. It is also exploring the male health supplement market with the "Royal Enclosure 1619" brand [88][91]. 5. Profit Forecast and Valuation - The company is expected to maintain robust growth in its core product lines, with projected revenue growth rates of 21.51%, 20.05%, and 18.31% for Ejiao products from 2024 to 2026. The projected gross margins for these products are expected to remain stable at around 73% [94][98].