WIT DYNE(SZ:000915) Southwest Securities·2025-03-25 13:32Investment Rating - The report maintains a "Buy" rating for the company with a target price of 36.48 CNY over the next six months, while the current price is 28.64 CNY [1]. Core Insights - The company has a strong focus on pediatric medication, with steady progress in new product development. The main product, Yikexin, continues to be a cornerstone of performance, holding the top market share in its category. The expansion of its age applicability from 0-6 years to 0-18 years is expected to enhance its product portfolio [7][10]. - The company reported a total revenue of 2.134 billion CNY for 2024, a decrease of 14.1% year-on-year, and a net profit attributable to the parent company of 515.59 million CNY, down 11.9% year-on-year. The revenue decline is attributed to intensified competition, lower birth rates, and regional procurement policies affecting Vitamin AD [7][8]. - The company is increasing its R&D investment, with a research expense ratio of 4.8% in 2024, up 0.9 percentage points from 2023. It aims to enhance its product series through targeted pediatric drug development [7][8]. Financial Summary - Revenue projections for 2025-2027 are 2.344 billion CNY (+9.8%), 2.598 billion CNY (+10.8%), and 2.905 billion CNY (+11.8%) respectively. Net profit is expected to be 533.18 million CNY (+3.4%), 559.66 million CNY (+4.97%), and 633.55 million CNY (+13.2%) for the same years [2][9]. - The earnings per share (EPS) forecast for 2025-2027 is 2.28 CNY, 2.39 CNY, and 2.70 CNY respectively, with corresponding dynamic price-to-earnings (PE) ratios of 13, 12, and 11 [2][9]. - The company’s total market capitalization is approximately 6.932 billion CNY, with total assets of 4.931 billion CNY and a net asset value per share of 12.43 CNY [4][12]. Market Position and Competitive Landscape - The company is positioned as a leader in the pediatric medication market, with a focus on innovative product development and strategic marketing initiatives. The competitive landscape includes companies like Jianmin Group and Jichuan Pharmaceutical, which are also focused on pediatric medications [10][11].