WIT DYNE(000915) 光大证券·2024-03-17 16:00Investment Rating - The report maintains a "Buy" rating for the company [14]. Core Views - The company reported revenue, net profit attributable to shareholders, and net profit excluding non-recurring items of 2.484 billion, 585 million, and 571 million yuan respectively for 2023, showing year-on-year growth of 6.11%, 11.08%, and 7.86% [2]. - The core subsidiary, Dain Pharmaceutical, achieved revenue and net profit of 2.426 billion and 1.182 billion yuan, with year-on-year growth of 18.88% and 21.58% [2]. - The company plans to distribute a cash dividend of 20 yuan per 10 shares, with a payout ratio of 80% [2]. - The company aims for a revenue and net profit growth of no less than 10% in 2024 [2]. Summary by Sections Financial Performance - The company’s operating cash flow was 1.175 billion yuan, down 1.82% year-on-year [2]. - The basic EPS for 2023 was 2.50 yuan [2]. - In Q4 2023, the company reported revenue, net profit attributable to shareholders, and net profit excluding non-recurring items of 765 million, 124 million, and 134 million yuan, reflecting year-on-year increases of 46.5%, 93.1%, and 73.1% [2]. Business Strategy - The company accelerated its exit from non-core businesses, which positively impacted the profitability of Dain Pharmaceutical [2]. - The company has received approval for a mid-to-long-term incentive plan from the Shandong State-owned Assets Supervision and Administration Commission, which is expected to enhance internal vitality [2]. Market Outlook - The company anticipates stable growth for its main product, Yikexin, due to a recovery in birth rates and increased adherence to daily usage [2]. - The company expects to optimize its organizational structure and drive sales for Dain Calcium and children's ibuprofen suppositories to exceed 100 million yuan in 2024 [2]. Valuation and Forecast - The net profit forecasts for 2024 and 2025 have been slightly adjusted to 669 million and 770 million yuan, respectively, reflecting a decrease of 1% and 3% from previous estimates [2]. - The estimated net profit for 2026 is projected to be 886 million yuan, with the current stock price corresponding to P/E ratios of 12, 10, and 9 for the years 2024, 2025, and 2026 [2].