ZUO LI YAO YE(SZ:300181) Great Wall Securities·2025-07-10 10:50Investment Rating - The investment rating for the company is "Buy" [6][19]. Core Views - The company is expected to achieve significant revenue growth, with projected revenues of 2,939 million yuan in 2025, representing a year-over-year growth of 14% [3][10]. - The net profit attributable to the parent company is forecasted to reach 687 million yuan in 2025, reflecting a year-over-year increase of 35.3% [3][10]. - The company is focusing on enhancing its market presence and product offerings, particularly in the OTC segment, which has seen a revenue increase of 64% year-on-year [5][10]. Financial Summary - Revenue projections for the company are as follows: - 2023: 1,942 million yuan - 2024: 2,578 million yuan (growth rate: 32.7%) - 2025: 2,939 million yuan (growth rate: 14.0%) - 2026: 3,568 million yuan (growth rate: 21.4%) - 2027: 4,243 million yuan (growth rate: 18.9%) [3][11]. - Net profit attributable to the parent company is projected as: - 2023: 383 million yuan - 2024: 508 million yuan (growth rate: 32.6%) - 2025: 687 million yuan (growth rate: 35.3%) - 2026: 902 million yuan (growth rate: 31.4%) - 2027: 1,106 million yuan (growth rate: 22.5%) [3][11]. - Key financial ratios include: - Return on Equity (ROE) is expected to increase from 14.1% in 2023 to 27.1% in 2027 [3][11]. - Earnings Per Share (EPS) is projected to rise from 0.55 yuan in 2023 to 1.58 yuan in 2027 [3][11]. Strategic Developments - The company has signed a collaboration agreement with Zhejiang University to establish a joint research center, investing a total of 20 million yuan [2][4]. - The focus on AI and traditional medicine aims to enhance product development and market competitiveness, particularly in the health and wellness sector [4][10]. Market Positioning - The company is enhancing its OTC product matrix and has implemented various strategies to improve sales efficiency and market penetration [5][10]. - The core products, including Wuling Capsules and Lingze Tablets, are positioned as essential items in the national basic drug catalog, indicating strong market demand and growth potential [10].