WIT DYNE(SZ:000915) Guohai Securities·2024-03-21 16:00Investment Rating - The report assigns a "Buy" rating for the company, marking its first coverage [4][16]. Core Insights - The company achieved a revenue of 2.484 billion yuan in 2023, representing a year-on-year growth of 6.11%, and a net profit attributable to shareholders of 585 million yuan, which is an increase of 11.08% [3][13]. - The pharmaceutical sector of the company showed robust growth, with a revenue of 2.426 billion yuan, up 18.88%, and a net profit of 1.182 billion yuan, increasing by 21.58% [13]. - The company is expected to continue its growth trajectory with projected revenues of 2.869 billion yuan, 3.262 billion yuan, and 3.592 billion yuan for 2024, 2025, and 2026 respectively, alongside net profits of 708 million yuan, 813 million yuan, and 904 million yuan for the same years [4][10]. Financial Projections - Revenue growth rates are forecasted at 16% for 2024, 14% for 2025, and 10% for 2026 [10]. - The projected net profit growth rates are 21% for 2024, 15% for 2025, and 11% for 2026 [10]. - The report anticipates a decline in ROE from 20% in 2023 to 17% by 2026 [10][15]. Market Position - The company has a diverse product portfolio in the pediatric medicine sector, with notable products like "Yikexin" vitamin AD drops, which has maintained a leading market share in its category [20]. - The current stock price is 35.18 yuan, with a market capitalization of approximately 8.24 billion yuan [21]. Valuation Metrics - The report provides P/E ratios of 11.65x for 2024, 10.14x for 2025, and 9.12x for 2026, indicating a favorable valuation trend [4][10]. - The P/B ratio is projected to decrease from 2.28 in 2023 to 1.52 by 2026 [10][15]. Performance Comparison - The company's performance relative to the CSI 300 index shows a 1-month increase of 17.7%, a 3-month increase of 11.9%, and a 12-month decrease of 5.7% [13].