业绩稳健增长，巩固龙头地位

Investment Rating - The report maintains a "Buy" rating for Dong'e Ejiao (000423) [1] Core Views - The company achieved a robust revenue growth of 16.7% year-on-year, reaching 4.72 billion yuan in 2023, with a net profit increase of 47.6% to 1.15 billion yuan [2] - The implementation of an equity incentive plan is expected to enhance confidence among management and employees, potentially leading to stable growth [2] - The gross margin improved to 70.2%, driven by the strong performance of its flagship products, particularly Ejiao [2] - The company is focusing on a dual business model combining pharmaceuticals and health consumer products, solidifying its leading position in the tonic market [2] - Earnings per share (EPS) forecasts for 2024-2026 are projected at 2.33 yuan, 2.68 yuan, and 3.04 yuan, respectively, with corresponding dynamic PE ratios of 26x, 22x, and 20x [2] Summary by Sections Financial Performance - In 2023, the company reported total revenue of 4.72 billion yuan, a 16.7% increase, and a net profit of 1.15 billion yuan, up 47.6% [2][9] - The fourth quarter of 2023 saw revenue of 1.29 billion yuan, reflecting a 29.3% year-on-year growth, and a net profit of 370 million yuan, up 37.5% [2] Business Strategy - The company is expanding its product lines, including Ejiao blocks and compound Ejiao syrup, while also targeting younger consumers through the "Peach Blossom Princess" brand [2] - The dual business model aims to leverage both traditional and modern health products to drive future growth [2] Profitability Metrics - The gross margin for 2023 was reported at 70.2%, with a decrease in sales expense ratio to 31.5% [2] - The company anticipates continued improvement in profitability, with gross margins projected to rise to 72.1% by 2026 [9] Earnings Forecast - Revenue projections for 2024-2026 are 5.61 billion yuan, 6.39 billion yuan, and 7.27 billion yuan, respectively, with net profits expected to be 1.5 billion yuan, 1.72 billion yuan, and 1.96 billion yuan [9][11]