TRT(600085) 兴业证券·2024-04-16 16:00Investment Rating - The report maintains a "Buy" rating for Tongrentang (600085.SH) [2][8] Core Views - The company achieved steady annual growth in 2023, with total revenue reaching 17.861 billion yuan, a year-on-year increase of 16.19%. The net profit attributable to shareholders was 1.669 billion yuan, up 16.92% year-on-year [5][6] - The pharmaceutical industry showed stable performance, with a continued implementation of the major product strategy, leading to a revenue of 11.079 billion yuan, a 12.60% increase year-on-year [3][6] - The pharmaceutical commercial segment also performed well, generating revenue of 10.246 billion yuan, a 20.82% increase year-on-year, with an expansion of retail stores to 1,001 by the end of 2023 [3][6] Financial Summary - 2023 Financial Performance: - Total Revenue: 17,861 million yuan, up 16.19% year-on-year - Net Profit: 1,669 million yuan, up 16.92% year-on-year - Cash Flow from Operating Activities: 1,869 million yuan, down 39.58% year-on-year [2][5][6] - 2024-2026 Forecast: - Expected Revenue: 20,246 million yuan (2024E), 22,920 million yuan (2025E), 25,898 million yuan (2026E) - Expected Net Profit: 1,913 million yuan (2024E), 2,190 million yuan (2025E), 2,504 million yuan (2026E) - Corresponding PE Ratios: 29.41 (2024E), 25.69 (2025E), 22.46 (2026E) [2][8] Product Performance - The top five product series generated revenue of 4.953 billion yuan, a 9.97% increase year-on-year, with a gross margin of 54.82% [3][6] - Revenue from various product categories: - Cardiovascular: 4.388 billion yuan, up 8.02% - Nutritional supplements: 1.730 billion yuan, up 10.41% - Heat-clearing products: 615 million yuan, up 16.10% - Gynecological products: 377 million yuan, up 8.16% - Other categories: 3.970 billion yuan, up 19.12% [3][6] Retail Expansion - The company expanded its retail presence, adding 59 new stores in 2023, with a total of 1,001 retail stores by year-end [3][6]