ZUO LI YAO YE(SZ:300181) EBSCN·2024-04-22 01:32Investment Rating - The report maintains a "Buy" rating for the company [5][16][19] Core Views - The company has demonstrated resilience in its operating performance, with a significant increase in profitability. The 2023 annual report showed a revenue of 1.942 billion yuan, a year-on-year increase of 7.6%, and a net profit of 383 million yuan, up 40% year-on-year [2][8] - The first quarter of 2024 exceeded market expectations with a revenue of 673 million yuan, representing a 36% year-on-year growth, and a net profit of 142 million yuan, up 46% year-on-year [2][9] - The company is positioned as a leader in the industry, leveraging an integrated model of raw material and formulation production, which creates patent barriers and scale production advantages [16] Summary by Sections Financial Performance - In 2023, the company achieved operating revenue of 1.942 billion yuan, net profit of 383 million yuan, and a basic EPS of 0.55 yuan. The cash dividend proposed is 4.50 yuan per 10 shares, with a payout ratio of 82.42% [2][8] - The first quarter of 2024 reported revenues of 673 million yuan and net profits of 142 million yuan, with a basic EPS of 0.20 yuan, indicating strong growth compared to the previous year [2][9] Product Performance - The sales revenue of the company's key products, including Wuling capsules and Lingze tablets, showed significant growth, with Wuling capsules increasing by 37.25% year-on-year in Q1 2024 [9][10] - The company has successfully completed the national and provincial standard filings for 335 varieties of traditional Chinese medicine formula granules, which is expected to enhance revenue [8][10] Market Outlook - The expansion of centralized procurement for Wuling capsules and the easing of restrictions on the reimbursement scope for Bailin tablets are expected to drive revenue growth in 2024 [10] - The approval of Bailin capsules as the first same-name and same-formulation drug in China is anticipated to further expand the market scale of the Bailin series [10]