DEEJ(000423) Southwest Securities·2025-03-20 11:00Investment Rating - The report assigns a "Buy" rating for the company, indicating an expected relative price increase of over 20% in the next six months [15]. Core Insights - The company achieved a strong revenue growth of 25.6% year-on-year in 2024, with total revenue reaching 59.2 billion yuan and a net profit attributable to the parent company of 15.6 billion yuan, reflecting a growth of 35.3% [7]. - The company is actively pursuing a dual-driven growth strategy, focusing on both pharmaceutical and health consumer products, with a significant increase in the revenue share from its core product, Ejiao, which accounted for 93.6% of total revenue [7]. - The company has implemented a stock incentive plan to enhance employee motivation and has initiated a cash dividend of 740 million yuan to shareholders [7]. Financial Performance Summary - Revenue and Profit Forecasts: - Revenue is projected to grow from 59.2 billion yuan in 2024 to 91.3 billion yuan by 2027, with a compound annual growth rate (CAGR) of approximately 15.7% [10]. - Net profit is expected to increase from 15.6 billion yuan in 2024 to 26.1 billion yuan in 2027, with a CAGR of around 18.86% [10]. - Earnings Per Share (EPS): - EPS is forecasted to rise from 2.42 yuan in 2024 to 4.05 yuan in 2027 [2]. - Return on Equity (ROE): - ROE is anticipated to improve from 15.07% in 2024 to 30.16% in 2027, indicating enhanced profitability [2]. Business Segment Analysis - Pharmaceutical Industry: - Revenue from the pharmaceutical segment is expected to grow from 55.4 billion yuan in 2024 to 84.3 billion yuan by 2027, with a stable gross margin of around 73% [10]. - Health Products: - Revenue from other health products is projected to grow significantly, with a CAGR of 30% from 2025 to 2027 [10]. - Donkey Breeding and Trade: - This segment is expected to see a decline in revenue, with a projected decrease of 5% annually from 2025 to 2027 [9]. Operational Efficiency - The company reported a gross margin of 72.4% in 2024, which is an increase of 2.2 percentage points year-on-year, indicating improved operational efficiency [7]. - Inventory turnover days decreased significantly to 213.7 days, down by 75.1 days year-on-year, reflecting better inventory management [7].