CONBA(SH:600572) Guotou Securities·2024-04-24 05:32Investment Rating - The report assigns a "Buy-A" investment rating to the company, with a 6-month target price of 7.00 CNY per share [27]. Core Insights - The company has achieved a revenue of 67.33 billion CNY in 2023, representing a year-on-year growth of 12.21%, and a net profit of 5.92 billion CNY, up 65.19% year-on-year [26]. - The company is focusing on a "big variety, big brand" strategy, with 17 product series achieving over 100 million CNY in sales, contributing to 68.6% of total revenue [24]. - The company has restructured its business classification to focus on a comprehensive range of traditional Chinese medicine products, with a target growth rate of 15% for traditional Chinese medicine revenue from 2024 to 2026 [10]. Financial Performance - The specialty chemical drug business generated revenue of 2.39 billion CNY in 2023, a growth of 2.98% year-on-year, while the traditional Chinese medicine business achieved 3.63 billion CNY, growing by 16.60% [22][10]. - The company plans to distribute a cash dividend of 2.00 CNY per 10 shares, amounting to a total of 5.04 billion CNY, which is 85.27% of the net profit for 2023 [5]. - The projected revenues for 2024, 2025, and 2026 are 75.50 billion CNY, 84.81 billion CNY, and 95.45 billion CNY, respectively, with net profits expected to be 7.32 billion CNY, 8.54 billion CNY, and 9.92 billion CNY [10]. Shareholder Returns - The company has initiated a share buyback program, planning to repurchase shares worth 200-400 million CNY, with 25.71 million shares repurchased by March 29, 2024 [29]. - The controlling shareholder has increased their stake in the company by 2% as of March 22, 2024, as part of a plan to acquire 2-4% of the company's shares [2].