CONBA(SH:600572) Guolian Securities·2024-04-22 08:30Investment Rating - The investment rating for the company is "Buy" (maintained) with a target price of 5.93 CNY per share [19]. Core Views - The company achieved a total revenue of 6.733 billion CNY in 2023, representing a year-over-year increase of 12.21%. The net profit attributable to shareholders was 592 million CNY, up 65.19% year-over-year [2]. - The traditional Chinese medicine health business accelerated its development, contributing significantly to the overall revenue [29]. - The company plans to increase its revenue to 7.645 billion CNY in 2024, with a projected growth rate of 13.55% [8]. Financial Performance - In Q4 2023, the company reported a revenue of 1.549 billion CNY, with a year-over-year growth of 2.40%. The net profit for this quarter was a loss of 32 million CNY [2]. - The company’s R&D investment reached 312 million CNY in 2023, accounting for 5.29% of total industrial revenue, with 57 new R&D projects initiated [24]. - The revenue from the traditional Chinese medicine segment was 4.544 billion CNY, growing by 16.13% year-over-year, making up 67.49% of total revenue [29]. Earnings Forecast and Valuation - The forecasted revenues for 2024, 2025, and 2026 are 7.645 billion CNY, 8.519 billion CNY, and 9.395 billion CNY, respectively, with corresponding growth rates of 13.55%, 11.43%, and 10.28% [8]. - The projected net profits for the same years are 693 million CNY, 787 million CNY, and 880 million CNY, with growth rates of 17.18%, 13.56%, and 11.78% [8]. - The company’s earnings per share (EPS) are expected to be 0.27 CNY, 0.31 CNY, and 0.34 CNY for 2024, 2025, and 2026, respectively, with price-to-earnings (P/E) ratios of 19, 17, and 15 [8].