Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [1]. Core Views - The company is entering a new phase of product launches, with significant growth potential in its probiotic and therapeutic drug segments. The report anticipates a robust increase in revenue and net profit over the next few years, driven by new product introductions and market expansion [5][6]. Summary by Sections Company Overview - The company, Minsheng Health, has a rich history dating back to 1926 and is known for its flagship product, 21 Jinweita, which was the first multivitamin OTC product in China. The company has shown steady growth with a CAGR of 13% in revenue and 18% in net profit from 2018 to 2024 [5][10][12]. Market and Industry Analysis - The OTC market in China is experiencing significant growth, with the market size increasing from 128.9 billion yuan in 2016 to 221.4 billion yuan in 2024, reflecting a CAGR of 7%, which is higher than the global average of 4% [5][37]. The vitamin and mineral segment is expected to maintain a growth rate of around 9% in the coming years, supported by an aging population and increasing health awareness among consumers [45][50]. Product Development and Growth Potential - The company is expanding its product matrix, with a focus on traditional vitamins and minerals, probiotics, and therapeutic drugs. The report highlights the expected launch of new products, including Minoxidil for hair loss and Varenicline for smoking cessation, which are projected to contribute significantly to revenue starting in 2025 [5][18][19]. Financial Projections - The report forecasts the company's total revenue to reach approximately 797.38 million yuan in 2025, with a year-on-year growth of 24.35%. Net profit is expected to be around 111.37 million yuan, reflecting a growth rate of 21.27% [1][5]. The company's P/E ratio is projected to decrease from 57.79 in 2023 to 44.44 in 2025, indicating an attractive valuation as growth accelerates [1]. Management and Governance - The company has a stable and experienced management team, with a clear ownership structure that supports strategic continuity. The major shareholder is Hangzhou Minsheng Pharmaceutical, ensuring strong control over the company's direction [18][20]. The introduction of an equity incentive plan in 2024 aims to enhance team motivation and align interests with long-term growth targets [22].
民生健康（301507）：百年同春，福泽民生