TRT(SH:600085) ZHONGTAI SECURITIES·2024-04-01 16:00Investment Rating - The report maintains a "Buy" rating for Tong Ren Tang (600085.SH) [1] Core Views - The company has demonstrated steady growth, with a notable increase in revenue and net profit, despite facing pressure on gross margins due to fluctuations in raw material prices [1][2] - The company achieved a revenue of 17.86 billion yuan in 2023, representing a year-on-year growth of 16%, and a net profit of 1.67 billion yuan, up 17% year-on-year [1][2] - The report highlights the company's effective market expansion and marketing strategies, which have contributed to its revenue growth [1] Financial Performance Summary - Revenue Forecasts: - 2022A: 15.37 billion yuan - 2023A: 17.86 billion yuan (16% growth) - 2024E: 20.61 billion yuan (15% growth) - 2025E: 23.25 billion yuan (13% growth) - 2026E: 25.80 billion yuan (11% growth) [1] - Net Profit Forecasts: - 2022A: 1.43 billion yuan - 2023A: 1.67 billion yuan (17% growth) - 2024E: 1.96 billion yuan (18% growth) - 2025E: 2.30 billion yuan (17% growth) - 2026E: 2.56 billion yuan (12% growth) [1] - Earnings Per Share (EPS): - 2023E: 1.22 yuan - 2024E: 1.43 yuan - 2025E: 1.67 yuan - 2026E: 1.87 yuan [1] - Return on Equity (ROE): - 2023E: 8% - 2024E: 9% - 2025E: 9% - 2026E: 9% [1] - Price-to-Earnings (P/E) Ratio: - 2023E: 39.4 - 2024E: 33.7 - 2025E: 28.6 - 2026E: 24.5 [1] - Price-to-Book (P/B) Ratio: - 2023E: 4.8 - 2024E: 4.3 - 2025E: 3.8 - 2026E: 3.4 [1] Business Segment Performance - Pharmaceutical Manufacturing: - Revenue growth of 7% in core products, although gross margins faced pressure due to raw material price fluctuations [1] - Pharmaceutical Commerce: - Rapid recovery post-pandemic with steady expansion of retail stores, achieving a revenue increase of 20.94% [1][2]