JZYY(600750) 开源证券·2025-02-25 16:32Investment Rating - The report assigns a "Buy" rating for Jiangzhong Pharmaceutical (600750.SH) [1] Core Views - Jiangzhong Pharmaceutical is positioned as a leader in gastrointestinal OTC medications, with strong growth potential in its OTC series products and a positive outlook for prescription drugs and health products. The company is expected to achieve net profits of 785 million, 891 million, and 1,008 million yuan for the years 2024, 2025, and 2026 respectively, with corresponding EPS of 1.25, 1.42, and 1.60 yuan. The current stock price corresponds to PE ratios of 16.9, 14.9, and 13.2 times for the same years [4][5][8]. Summary by Sections Company Overview - Jiangzhong Pharmaceutical was established in 1969 and underwent a restructuring in 1999. It became part of the China Resources Group in 2019, enhancing its resource integration capabilities. The company has developed three main business segments: OTC, prescription drugs, and health products, supported by acquisitions of Sangha Pharmaceutical and Jisheng Pharmaceutical [4][15]. Financial Performance - From 2019 to 2023, the company's revenue grew from 2.449 billion yuan to 4.390 billion yuan, with a CAGR of 15.71%. The net profit increased from 464 million yuan to 708 million yuan, with a CAGR of 11.18%. In 2023, the revenue from OTC drugs accounted for 69.89% of total revenue, while prescription drugs contributed 15.21% [27][29]. Business Strategy - The company focuses on enhancing its OTC business, particularly in four core categories: spleen and stomach, intestinal health, throat and cough, and nutritional supplements. Key products include Jianwei Xiaoshi Tablets and Lactobacillus Tablets, which are expected to drive steady revenue growth [5][35]. Market Position - Jiangzhong Pharmaceutical maintains a strong market position in the gastrointestinal drug sector, with its Jianwei Xiaoshi Tablets holding a market share that increased from 74.8% to 83.8% from 2018 to 2023. The company is also expanding its presence in the prescription drug market and health products [39][45]. Dividend Policy - The company has demonstrated a commitment to shareholder returns, with cash dividend ratios exceeding 100% from 2021 to 2023 and an increase in dividend yield from 3.96% to 5.92% during the same period. This reflects the company's confidence in sustainable growth [6][19].