JZYY(SH:600750) Guolian Securities·2024-03-26 16:00Investment Rating - The investment rating for the company is "Buy" [7][6] Core Views - The company reported a revenue of 4.39 billion yuan in 2023, a year-on-year increase of 13%, and a net profit attributable to shareholders of 708 million yuan, up 18% year-on-year [4] - The health business has become a new growth engine, with revenue reaching 650 million yuan, a growth of 49.96% year-on-year, and a gross margin of 37.28%, an increase of 9.10 percentage points [5][11] - The company is expected to achieve revenues of 5.17 billion yuan, 6.05 billion yuan, and 7.06 billion yuan in 2024, 2025, and 2026 respectively, with year-on-year growth rates of 17.64%, 17.14%, and 16.63% [6][18] Financial Performance - The company’s non-prescription drug business generated revenue of 3.05 billion yuan, a year-on-year increase of 16.46%, with a gross margin of 71.70% [17] - The core product in the digestive category, Jianwei Xiaoshi Pian, achieved a revenue of 1.1 billion yuan, while two key products in the intestinal health category surpassed 500 million yuan in revenue [17] - The forecast for net profit attributable to shareholders is 831 million yuan, 966 million yuan, and 1.12 billion yuan for 2024, 2025, and 2026 respectively, with growth rates of 17.38%, 16.22%, and 15.92% [6][18] Valuation - The target price for the company is set at 26.42 yuan, based on a 20x PE ratio for 2024 [6][7] - The current price is 22.53 yuan, indicating potential upside [7] - The company’s EPS is projected to be 1.32 yuan, 1.54 yuan, and 1.78 yuan for the years 2024, 2025, and 2026 respectively [6][18]