ZUO LI YAO YE(SZ:300181) Soochow Securities·2025-12-03 06:33Investment Rating - The report maintains a "Buy" rating for Zhaoli Pharmaceutical [1] Core Views - The company plans to issue convertible bonds to fund capacity expansion and R&D for "Wuling + X" products, supporting long-term growth [8] - The core products, Wuling series and Bailing series, have shown significant growth in both production and sales, with Wuling capsule production and sales expected to continue increasing [8] - The company emphasizes shareholder returns, committing to a cash distribution of at least 10% of distributable profits annually, with a minimum of 80% cash dividends during mature phases without major capital expenditures [8] - The financial forecasts indicate a steady increase in revenue and net profit, with projected net profits of 6.55 billion, 8.41 billion, and 10.41 billion for 2025-2027 [8] Financial Summary - Total revenue is projected to grow from 1,942 million in 2023 to 4,104 million by 2027, with a CAGR of approximately 16.20% [1] - Net profit attributable to shareholders is expected to rise from 382.94 million in 2023 to 1,041.23 million in 2027, reflecting a CAGR of about 23.87% [1] - The latest diluted EPS is forecasted to increase from 0.55 in 2023 to 1.48 in 2027, indicating strong earnings growth [1] - The current P/E ratio is projected to decrease from 31.60 in 2023 to 11.62 in 2027, suggesting an attractive valuation as earnings grow [1]