ZUO LI YAO YE(SZ:300181) HUAXI Securities·2025-08-22 11:13Investment Rating - The investment rating for the company is "Accumulate" [5] Core Views - The company's revenue for the first half of 2025 reached 1.6 billion yuan, representing a year-on-year growth of 11.99%, while the net profit attributable to shareholders was 374 million yuan, up 26.16% year-on-year [1][2] - The company's gross margin and net margin for Q2 2025 were 65.26% and 25.26%, respectively, showing an upward trend compared to Q2 2024 and Q1 2025, primarily due to an increase in the proportion of high-margin businesses and cost reduction measures [2] - Future growth is anticipated due to the increasing penetration of the company's products and market share gains from collective procurement initiatives [2] Financial Summary - The company adjusted its revenue forecasts for 2025-2027, predicting revenues of 3.221 billion, 3.871 billion, and 4.626 billion yuan, respectively, with corresponding EPS estimates of 0.95, 1.20, and 1.50 yuan [3] - The company reported a significant increase in revenue from its core products, with the Wuling series generating 897 million yuan in H1 2025, a 7.23% increase year-on-year, and the Bailing series achieving 113 million yuan, up 38.5% year-on-year [7] - The traditional Chinese medicine granule business showed rapid growth, with revenues of 74 million yuan in H1 2025, marking a 56.6% year-on-year increase [7] Financial Projections - The projected operating revenues for 2025, 2026, and 2027 are 3.221 billion, 3.871 billion, and 4.626 billion yuan, respectively, with net profits expected to be 676 million, 854 million, and 1.073 billion yuan [9] - The company's gross margin is projected to be 58.9% in 2025, with a net profit margin of 20.6% [9] - The return on equity (ROE) is expected to increase from 18.3% in 2024 to 21.1% in 2025, reaching 30.3% by 2027 [9]