JZYY(SH:600750) Guohai Securities·2024-03-24 16:00Investment Rating - The investment rating for the company is "Buy" (maintained) [5][31] Core Views - The company has demonstrated stable growth in performance, with a record high dividend yield [5][25] - The OTC segment has shown significant revenue growth, while the prescription drug segment has faced a decline [28][29] - The company is expected to maintain a strong brand presence in the digestive traditional Chinese medicine sector, supported by its non-prescription drug offerings [31] Financial Performance Summary - In Q4 2023, the company achieved revenue of 1.25 billion yuan, a year-on-year increase of 23.67%, and a net profit attributable to shareholders of 119 million yuan, up 27.34% [2] - For the full year 2023, the company reported revenue of 4.39 billion yuan, a 13% increase year-on-year, and a net profit of 708 million yuan, growing 18.4% [4] - The company maintained a high dividend payout ratio, with total cash dividends of 818 million yuan, representing 115.52% of the net profit for 2023, resulting in a dividend yield of 5.77% [3][4] Growth Projections - Revenue projections for 2024, 2025, and 2026 are 4.99 billion yuan, 6.15 billion yuan, and 7.25 billion yuan, respectively, with year-on-year growth rates of 14%, 23%, and 18% [29][31] - Corresponding net profits for the same years are expected to be 798 million yuan, 945 million yuan, and 1.086 billion yuan, with growth rates of 13%, 19%, and 15% [29][31] Profitability and Efficiency - The company's overall gross margin for 2023 was 65.31%, an increase of 0.94 percentage points year-on-year [25] - The sales expense ratio decreased by 1.72 percentage points to 37.09%, while the management expense ratio fell by 0.5 percentage points to 4.8% [25] - The return on equity (ROE) is projected to increase from 18% in 2023 to 24% by 2026 [27]