DEEJ(000423) 浙商证券·2025-01-19 02:23Investment Rating - The report maintains a "Buy" rating for Dong'e Ejiao, with a target price of 77.24 CNY, indicating a potential upside of 23% based on a 26x PE for 2025 [5][70]. Core Insights - Dong'e Ejiao, a subsidiary of China Resources Group, has shown significant growth since the state-owned enterprise reform began in 2020, and is expected to continue its high growth and high dividend trajectory [1][5]. - The company leads the blood-nourishing product market with a 38% market share in the first three quarters of 2024, benefiting from increased health awareness post-pandemic [2][5]. Summary by Sections Company Overview - Dong'e Ejiao is a leading producer of Ejiao and related products, established in 1952 and listed in 1996. It is recognized as a standard setter in the Ejiao industry and a model for high-quality development in traditional Chinese medicine [15][16]. Market Position and Growth - The blood-nourishing product market has a compound annual growth rate (CAGR) of 9.3% from 2020 to 2023, with Dong'e Ejiao being the market leader [2][31]. - The company has successfully expanded its product line to include ready-to-eat and male health products, enhancing its market presence [2][5]. Financial Performance and Projections - Revenue projections for 2024-2026 are 58.71 billion CNY, 68.01 billion CNY, and 78.34 billion CNY, representing year-on-year growth rates of 24.50%, 15.85%, and 15.18% respectively [5][67]. - The net profit for the same period is expected to be 15.38 billion CNY, 19.13 billion CNY, and 23.17 billion CNY, with growth rates of 33.65%, 24.37%, and 21.14% respectively [5][67]. Catalysts for Growth - Anticipated strong performance in Q1 2025 due to marketing reforms and cost reduction efforts, with revenue and net profit growth expected to exceed industry averages [4][64]. - Continued product revenue growth driven by marketing reforms and an increase in gross margins [4][64]. Risk Factors - The report does not include risk factors, focusing instead on the positive outlook and growth potential of Dong'e Ejiao [6].