ZZPZH(SH:600436)2024-04-22 10:52Investment Rating - The report assigns a rating of "Outperform" for the company, indicating an expected total return performance exceeding the benchmark index by more than 10% over the next 12 months [2][11]. Core Insights - The company reported a revenue of RMB 10.06 billion for 2023, reflecting a year-on-year growth of 15.7%, and a net profit of RMB 2.8 billion, up 13.2% year-on-year, which aligns with expectations [5]. - The fourth quarter saw a revenue of RMB 2.46 billion, an 18.3% increase year-on-year, but net profit decreased by 6.5% due to a decline in the pharmaceutical manufacturing revenue share and increased marketing expenses [5]. - The company has strengthened its market management and terminal activities, enhancing sales tracking and adjusting sales policies in response to market changes [5]. Financial Forecasts and Valuation - Revenue projections for 2024, 2025, and 2026 are RMB 11.47 billion, RMB 13.34 billion, and RMB 15.51 billion, respectively. Net profit forecasts for the same years are RMB 3.48 billion, RMB 4.30 billion, and RMB 5.34 billion [6][8]. - The current stock price corresponds to a 2024 PE ratio of 39 times, maintaining the "Outperform" rating [6]. - The company is expected to achieve a net profit growth rate of 24.4% in 2024, with a consistent growth trajectory projected for the following years [4][6]. Performance Metrics - The company achieved a gross profit margin of 46.8% in 2023, with expectations to increase to 49.4% by 2024 [8]. - The return on average equity (ROAE) is projected to rise from 22.64% in 2023 to 28.51% by 2026 [4][8]. - The company has maintained a strong dividend payout ratio, with expected dividends per share increasing from RMB 2.3 in 2023 to RMB 4.3 by 2026 [4][8].