CheezhengTTM(SZ:002287) Guohai Securities·2025-08-28 14:13Investment Rating - The report assigns an investment rating of "Buy" for the company, marking the first coverage [1][6]. Core Insights - The company, Qizheng Tibetan Medicine, reported a significant year-on-year increase in revenue and profit for the first half of 2025, with operating income reaching 1.175 billion yuan (up 16.36% YoY) and net profit attributable to shareholders at 358 million yuan (up 10.04% YoY) [3][4]. - The company's strategic initiatives, termed "Six Battles," focus on innovation and digital empowerment to enhance the Tibetan medicine industry, aiming for long-term sustainable development [6][4]. - The report forecasts revenue growth for the years 2025, 2026, and 2027 to be 2.741 billion yuan, 3.195 billion yuan, and 3.724 billion yuan respectively, with corresponding net profits of 663 million yuan, 781 million yuan, and 944 million yuan [6][8]. Financial Performance Summary - For Q2 2025, the company achieved operating income of 772 million yuan (up 19.75% YoY) and net profit of 283 million yuan (up 23.88% YoY) [3][6]. - The gross profit margin for Q2 2025 was reported at 82.54%, reflecting a slight increase of 0.36 percentage points YoY, while the net profit margin improved to 36.83%, up 1.41 percentage points YoY [6][4]. - The company’s sales expense ratio decreased to 37.29%, down 1.42 percentage points YoY, indicating improved cost management [6][4]. Market Performance - The company's stock performance over the past 12 months shows a gain of 46.1%, outperforming the CSI 300 index, which increased by 35.8% [5][6]. - As of August 28, 2025, the stock price was 27.89 yuan, with a 52-week price range of 18.23 to 38.16 yuan [5][6].