Investment Rating - The report suggests that the company is undervalued with a static PE of 8x and a dividend yield of 6.1%, recommending active attention [1] Core Views - The company's performance has shown rapid growth, with a 14.3% year-on-year increase in revenue to RMB 4.517 billion and a 34.1% increase in net profit attributable to shareholders to RMB 970 million [1] - The growth is attributed to the continuous increase in sales of respiratory system drugs and several exclusive oral products, as well as a record high in sales of traditional Chinese medicine (TCM) formula granules [1] - The gross profit margin improved by 0.7 percentage points to 75.1%, and the net profit margin increased from 18.3% to 21.5% [1] - The return on equity (ROE) rose from 11.32% in 2022 to 13.78% in 2023 [1] - The company's dividend payout ratio for 2023 was 42.2%, with a dividend yield of 6.1% [1] Business Segments TCM Formula Granules - TCM formula granules accounted for 26.6% of the company's total sales in 2023, positioning the company among the top five TCM formula granule listed companies in China [1] - The company successfully bid in the 15-province alliance TCM formula granules centralized procurement, maintaining good prices and facilitating rapid product expansion [1] - The company's production capacity for TCM formula granules can reach an output value of RMB 5 billion [1] Oral Drugs - The proportion of oral drugs in the company's revenue has increased from 54.7% in 2019 to 60.5% currently, with exclusive products like Huamoyan Granules and Qihuang Tongmi Soft Capsules showing continuous growth [1] - The proportion of injectables is 39.5%, indicating further improvement in the company's operational stability [1] - Sales of drugs included in the National Essential Drugs List increased by 32.8% to RMB 1.744 billion, accounting for 38.6% of the group's total sales [1] Innovative TCM Drugs - The company has made significant progress in TCM innovation, with several research and clinical projects advancing smoothly [1] - A 3.1-class TCM new drug, Yiguanjian Granules, has been approved for market, and three other innovative drugs, including Sailuotong Capsule, Q-B-Q-F Concentrated Pill, and JC Capsule, are in Phase III clinical trials [1] - Sailuotong Capsule, an innovative TCM for vascular dementia, is expected to complete Phase III clinical trials this year, targeting a market with significant potential due to the lack of effective treatments [1] Valuation and Outlook - The company's static PE is 8x, and the dividend yield is 6.1%, indicating undervaluation [1] - The company's product pipeline is rich, with oral drugs accounting for 60.5% of revenue, TCM formula granules expected to expand rapidly, and innovative drugs progressing well [1]
业绩快速增长，新药研发推进顺利