DEEJ(SZ:000423) KAIYUAN SECURITIES·2025-04-30 06:23Investment Rating - The investment rating for Dong'e Ejiao is maintained as "Buy" [1] Core Views - The company achieved a revenue of 1.719 billion yuan in Q1 2025, representing a year-on-year increase of 18.24%. The net profit attributable to the parent company was 425 million yuan, up 20.25% year-on-year. The non-recurring net profit was 416 million yuan, reflecting a growth of 26.69% year-on-year [4][5] - The gross margin for Q1 2025 was 73.62%, an increase of 1.83 percentage points, while the net profit margin was 24.73%, up 0.40 percentage points [4] - The company is optimistic about its long-term growth potential due to its focus on the Ejiao category, male health products, and industry chain layout. Profit forecasts for 2025-2027 are set at 1.874 billion, 2.248 billion, and 2.679 billion yuan respectively, with EPS projected at 2.91, 3.49, and 4.16 yuan [4][5] Financial Performance Summary - In Q1 2025, the company reported a negative net cash flow from operating activities of -304 million yuan, primarily due to an increase in accounts receivable and financing receivables. Accounts receivable rose to 541 million yuan, a year-on-year increase of 583.32% [5] - The company is expected to manage its credit limits effectively throughout the year, which should alleviate short-term cash flow pressures [5] - The financial summary indicates a steady growth trajectory with revenue projections of 6.919 billion yuan for 2025, 8.075 billion yuan for 2026, and 9.313 billion yuan for 2027, with corresponding net profits of 1.874 billion, 2.248 billion, and 2.679 billion yuan [8][10] Strategic Initiatives - The company is actively deepening the integration of primary, secondary, and tertiary industries to enhance growth. It focuses on securing raw material supply, advancing the Ejiao main business, and developing a dual-driven model of pharmaceuticals and health consumer products [6] - The strategy includes building a strong brand matrix and integrating online and offline channels to enhance market presence [6]