Shaanxi Panlong Pharmaceutical (SZ:002864) Great Wall Securities·2024-02-26 16:00Investment Rating - The report maintains a "Buy" rating for the company, expecting a price increase of over 15% relative to the industry index within the next six months [10][35]. Core Views - The company is positioned as a leading player in the traditional Chinese medicine sector for rheumatology and orthopedics, benefiting from policy incentives, an aging population, and consumption upgrades. Revenue projections for 2023-2025 are CNY 1.159 billion, CNY 1.416 billion, and CNY 1.779 billion, with net profits of CNY 125 million, CNY 149 million, and CNY 178 million, representing year-on-year growth rates of 23.3%, 19.5%, and 19.4% respectively [10][18]. - The appointment of a new management team, led by Hu Qifei, is expected to bring fresh breakthroughs and enhance the company's operational management [2][21]. Financial Performance - Revenue for 2023 is estimated at CNY 1,159 million, with a year-on-year growth rate of 19.0%. For 2024 and 2025, revenue is projected to be CNY 1,416 million and CNY 1,779 million, with growth rates of 22.2% and 25.7% respectively [18]. - The company's net profit for 2023 is expected to be CNY 125 million, with growth rates of 23.3%, followed by CNY 149 million in 2024 and CNY 178 million in 2025, with growth rates of 19.5% and 19.4% respectively [10][18]. - The report indicates an increase in earnings per share (EPS) from CNY 1.17 in 2023 to CNY 1.67 in 2025, with corresponding price-to-earnings (P/E) ratios decreasing from 24.7 to 17.3 over the same period [10][18]. Market Position - The company is recognized for its strong competitive advantages and increasing market share within its niche industry, reinforcing its leading position [10][18].