Q1利润端延续高增长，看好长期成长性

Investment 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]. Core Insights - The company continues to experience high growth in net profit, with significant sales increases in its core products, particularly the traditional Chinese medicine formula granules. The sales of Wuling capsules and Lingze tablets grew by 9.12% and 31.96% year-on-year, respectively, in 2023, and this positive trend continued into Q1 2024. However, the sales of traditional Chinese medicine formula granules saw a decline of 29.80% in 2023 due to regulatory changes, but a notable recovery is expected in Q1 2024 due to an increase in registered varieties [1]. - The company aims to develop its core products into large-scale varieties, targeting Wuling capsules to reach a sales scale of 2 billion, the Bailing series to 1 billion, and Lingze tablets to 500 million to 1 billion [1]. - The company has received a secondary protection certificate for Lingze tablets, which is expected to benefit from the increasing demand due to an aging population. Lingze tablets have shown strong sales momentum, with a 68.42% and 31.96% year-on-year growth in sales for 2021 and 2022, respectively [31]. Financial Performance - In 2023, the company achieved a revenue of 1.942 billion yuan, representing a year-on-year growth of 7.61%, and a net profit of 386 million yuan, up by 41.55%. For Q1 2024, the expected net profit is between 137 million and 147 million yuan, reflecting a growth of 40.58% to 50.84% [14]. - The company is projected to achieve revenues of 1.942 billion, 2.379 billion, and 2.820 billion yuan for the years 2023, 2024, and 2025, respectively, with year-on-year growth rates of 8%, 22%, and 19% [34]. - The expected net profit for the same years is projected to be 385 million, 497 million, and 606 million yuan, with corresponding growth rates of 41.1%, 29.0%, and 21.9% [34].