DRTG(SH:600329) Great Wall Securities·2024-04-02 16:00Investment Rating - The report maintains a "Buy" rating for the company, indicating an expected stock price increase of over 15% relative to the industry index within the next six months [16]. Core Views - The company has shown good growth in its industrial segment, with an overall improvement in profitability. The industrial revenue reached 49.30 billion yuan in 2023, reflecting a year-on-year growth of 10.34%, while the commercial segment saw a decline of 11.19% [2]. - The company achieved a gross margin of 44.01% in 2023, an increase of 4.08 percentage points year-on-year, primarily due to an optimized product mix with a higher proportion of industrial sales [2]. - The company plans to enhance channel penetration and regional expansion in 2024, focusing on key products in cardiovascular, respiratory, and digestive categories [3]. Financial Summary - In 2023, the company reported total revenue of 82.22 billion yuan, a slight decline of 0.33% year-on-year, while the net profit attributable to shareholders was 9.87 billion yuan, an increase of 14.49% year-on-year [1]. - The projected net profits for 2024, 2025, and 2026 are 12.14 billion yuan, 14.76 billion yuan, and 17.26 billion yuan, respectively, with corresponding EPS of 1.58 yuan, 1.92 yuan, and 2.24 yuan [7]. - The company's return on equity (ROE) is expected to improve from 14.6% in 2023 to 21.1% by 2026 [12]. Product and Market Performance - The company’s core industrial segment has achieved double-digit growth, driven by strong sales of major products such as "速效救心丸" and "清肺消炎丸" [2]. - The company plans to maintain a high dividend payout ratio, distributing 12.80 yuan per 10 shares, which accounts for 99.91% of the net profit attributable to shareholders in 2023 [2].