DEEJ(000423) 信达证券·2025-03-19 07:41Investment Rating - The report assigns a "Buy" rating for Dong'e Ejiao (000423) based on its strong performance and growth potential [1]. Core Insights - Dong'e Ejiao has demonstrated robust growth in its core products, particularly Ejiao and related products, which achieved a revenue of 5.544 billion yuan in 2024, marking a year-on-year increase of 27.04% [2]. - The company has maintained a steady improvement in profitability, with a gross margin of 73.61% for Ejiao products, up 1.23 percentage points year-on-year [2]. - The company emphasizes a dual-driven growth strategy focusing on pharmaceuticals and health consumer products, which are expected to continue driving business growth [3]. Financial Performance - In 2024, Dong'e Ejiao reported total revenue of 5.921 billion yuan, a 25.57% increase from the previous year, and a net profit attributable to shareholders of 1.557 billion yuan, up 35.29% [1][2]. - The company's operating cash flow for 2024 was 2.171 billion yuan, reflecting an 11.13% increase year-on-year, with a cash flow to net profit ratio of 139% [5]. - The report forecasts revenue growth for the next three years, estimating 6.815 billion yuan in 2025, 7.849 billion yuan in 2026, and 9.045 billion yuan in 2027 [7]. Dividend Policy - Dong'e Ejiao has a strong commitment to shareholder returns, with a total dividend payout of approximately 1.555 billion yuan for 2024, representing nearly 100% of its net profit [5]. - The company announced a cash dividend of 12.70 yuan per 10 shares for 2024, resulting in a dividend yield of about 4.1% based on the closing price on March 18, 2025 [5]. Strategic Development - The company adheres to the "1238" development strategy, focusing on cultural heritage, dual-driven business models, and integration across various sectors [3]. - Key products such as Dong'e Ejiao (block), Compound Ejiao Syrup, and new products are expected to contribute significantly to future growth [3].