Lushang Freda Pharmaceutical (SH:600223) KAIYUAN SECURITIES·2024-03-22 16:00Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected performance that will exceed the market by over 20% [9][17]. Core Viewpoints - The company achieved a net profit of 303 million yuan in 2023, which is a significant increase of 567% year-on-year, despite a revenue decline of 64.6% to 4.579 billion yuan [7][25]. - The report highlights the company's strategic focus on high-quality development, particularly in the cosmetics sector, which saw a revenue increase of 22.7% to 2.42 billion yuan in 2023 [10][24]. - The company is expected to benefit from its strategic restructuring and personnel changes, positioning itself as a leading enterprise in the pharmaceutical and health sectors [24][21]. Financial Summary - The company's revenue for 2023 was 4.579 billion yuan, with a projected revenue of 4.619 billion yuan for 2024, reflecting a slight growth of 0.9% [25]. - The net profit forecast for 2024 is 377 million yuan, with an expected EPS of 0.37 yuan, and the P/E ratio is projected to be 25.5 times [7][25]. - The gross margin for the cosmetics segment was reported at 62.1%, showing a year-on-year increase of 1.2 percentage points [10][25]. Business Segments - In the cosmetics segment, the company reported a significant revenue acceleration in Q4 2023, with a 41.2% increase to 760 million yuan [10][23]. - The pharmaceutical segment's revenue was 520 million yuan, reflecting a modest growth of 1.6%, while the raw materials segment saw a revenue increase of 23.2% to 350 million yuan [10][25]. - The real estate and property segment experienced a drastic decline in revenue by 88.3% to 1.14 billion yuan, primarily due to the divestment of real estate operations [10][25]. Strategic Initiatives - The company is enhancing its marketing system and strengthening technological innovation to drive business growth, particularly through the launch of its collagen medical beauty brand "KeyC" [24][21]. - The report emphasizes the company's efforts to expand sales channels in the pharmaceutical sector and explore online retail models [24][21]. Market Position - The current stock price is 9.47 yuan, with a market capitalization of 9.627 billion yuan [22]. - The company is positioned to leverage its core business focus and strategic initiatives to achieve sustainable growth in the competitive market landscape [24][21].