DEEJ(SZ:000423) Xinda Securities·2024-04-11 16:00Investment Rating - The report assigns an investment rating of "Buy" for the company, indicating a strong performance relative to the benchmark [1]. Core Insights - The company is expected to achieve a net profit attributable to shareholders of 334-357 million yuan in Q1 2024, representing a year-on-year growth of 45-55%. The non-recurring net profit is projected to be 309-332 million yuan, with a growth of 46-56% [1][2]. - The company maintains a "dual-driven" growth model focusing on both pharmaceutical and health consumer products, aiming to enhance brand recognition and expand its product offerings [1][2]. - The main product line, which includes various Ejiao products, generated revenue of 4.363 billion yuan in 2023, accounting for 92.55% of total revenue, with a gross margin of 72.37% [1][2]. Financial Performance Summary - Total revenue is projected to grow from 4.715 billion yuan in 2023 to 5.650 billion yuan in 2024, reflecting a year-on-year growth rate of 19.8% [2]. - The net profit attributable to shareholders is expected to increase from 1.151 billion yuan in 2023 to 1.447 billion yuan in 2024, with a growth rate of 25.8% [2]. - The gross margin is forecasted to remain stable, increasing slightly from 70.2% in 2023 to 70.4% in 2024 [2]. - The company’s return on equity (ROE) is projected to rise from 10.7% in 2023 to 12.3% in 2024 [2]. Business Strategy - The company plans to enhance its brand positioning as a top-tier health supplement brand while focusing on digital and integrated marketing strategies to build brand barriers [1][2]. - The report emphasizes the importance of innovation and a robust R&D framework to drive business growth and improve operational performance [1][2].