XJZY(SZ:002332) Orient Securities·2025-04-28 07:03Investment Rating - The report maintains a "Buy" rating for the company, with a target price of 11.04 CNY based on a 16x P/E ratio for 2025 [2][5]. Core Views - The company's revenue is under short-term pressure, but there is sufficient growth momentum. The revenue forecast for 2025-2027 has been adjusted, with expected earnings per share of 0.69 CNY, 0.80 CNY, and 0.97 CNY respectively [2][8]. - The company achieved a revenue of 4.001 billion CNY in 2024, a decrease of 3.0% year-on-year, and a net profit attributable to the parent company of 397 million CNY, down 29.5% year-on-year. However, the gross margin improved to 57.5% due to a higher proportion of high-margin formulations [4][8]. - The company has a clear growth trajectory with new product approvals and ongoing international expansion efforts. In 2024, four generic drug projects were approved, and several others are in various stages of development [8]. Financial Summary - Revenue Forecast: - 2023: 4,123 million CNY - 2024: 4,001 million CNY - 2025: 4,598 million CNY (14.9% growth) - 2026: 5,361 million CNY (16.6% growth) - 2027: 6,336 million CNY (18.2% growth) [4][10] - Net Profit: - 2023: 563 million CNY - 2024: 397 million CNY - 2025: 683 million CNY (71.9% growth) - 2026: 796 million CNY (16.5% growth) - 2027: 961 million CNY (20.8% growth) [4][10] - Earnings Per Share: - 2023: 0.57 CNY - 2024: 0.40 CNY - 2025: 0.69 CNY - 2026: 0.80 CNY - 2027: 0.97 CNY [4][10] - Profitability Ratios: - Gross Margin: 52.9% (2023), 57.5% (2024), 57.0% (2025E), 57.8% (2026E), 58.0% (2027E) - Net Margin: 13.7% (2023), 9.9% (2024), 14.9% (2025E), 14.8% (2026E), 15.2% (2027E) [4][10]