YUNNAN BAIYAO(SZ:000538) ZHESHANG SECURITIES·2025-09-05 07:36Investment Rating - The investment rating for Yunnan Baiyao is maintained as "Buy" [2][7]. Core Views - The company's performance in the first half of 2025 met expectations, with revenue reaching 21.257 billion yuan, a year-on-year increase of 3.92%, and net profit attributable to shareholders at 3.633 billion yuan, up 13.93% year-on-year. The company plans to distribute a special dividend totaling 1.818 billion yuan, which accounts for 50.05% of the net profit for the first half of 2025 [7]. - The business structure continues to optimize, with strong growth in the industrial sector. The pharmaceutical segment's revenue grew by 10.8% year-on-year, driven by core products such as Yunnan Baiyao aerosol spray, which saw sales exceed 1.453 billion yuan, a significant increase of over 20.9% [7]. - The health products segment achieved revenue of 3.442 billion yuan, a year-on-year increase of 9.46%, with Yunnan Baiyao toothpaste maintaining the top market share in the domestic channel [7]. Financial Summary - Revenue projections for Yunnan Baiyao are as follows: 40.033 billion yuan in 2024, 41.555 billion yuan in 2025, 43.424 billion yuan in 2026, and 45.196 billion yuan in 2027, reflecting growth rates of 2.36%, 3.80%, 4.50%, and 4.08% respectively [2]. - Net profit attributable to shareholders is projected to be 4.749 billion yuan in 2024, 5.383 billion yuan in 2025, 6.138 billion yuan in 2026, and 6.774 billion yuan in 2027, with year-on-year growth rates of 16.02%, 13.34%, 14.02%, and 10.36% respectively [2]. - Earnings per share (EPS) are expected to be 2.66 yuan in 2024, 3.02 yuan in 2025, 3.44 yuan in 2026, and 3.80 yuan in 2027, with corresponding price-to-earnings (P/E) ratios of 22.04, 19.45, 17.06, and 15.46 [2].