ZZPZH(SH:600436) Wanlian Securities·2024-04-25 03:00Investment Rating - The investment rating for the company is "Buy" (maintained) [4]. Core Views - The company reported a revenue of 10.06 billion yuan in 2023, representing a growth of 15.69%, and a net profit attributable to shareholders of 2.80 billion yuan, up by 13.15% [5][6]. - The core products, including "Pian Zai Huang" and "An Gong Niu Huang Wan," have shown strong growth, while the cosmetics segment has turned profitable and is expected to continue high growth [6][7]. - The company has adjusted its revenue forecasts for 2024, 2025, and 2026 to 11.64 billion yuan, 13.28 billion yuan, and 15.06 billion yuan, respectively, with corresponding net profits of 3.47 billion yuan, 4.08 billion yuan, and 4.73 billion yuan [9]. Summary by Sections Financial Performance - In 2023, the company achieved a revenue of 10,058.50 million yuan and a net profit of 2,797.35 million yuan. The fourth quarter of 2023 saw a revenue of 2,458 million yuan, with a net profit of 392 million yuan [5]. - For Q1 2024, the company reported a revenue of 3,171 million yuan, reflecting a growth of 20.58%, and a net profit of 975 million yuan, up by 26.61% [5]. Product Performance - The liver disease medication generated revenue of 4,463 million yuan in 2023, with a gross margin of 78.79%. The cardiovascular medication saw a revenue increase of 60.57% to 266 million yuan, but its gross margin decreased significantly [6]. - The cosmetics segment achieved a revenue of 707 million yuan in 2023, turning profitable with a gross margin of 62.18%. In Q1 2024, the cosmetics revenue surged to 200 million yuan, marking an 83.18% increase [7]. Cost and Margin Analysis - The overall gross margin for 2023 was 46.76%, with a net margin of 28.35%. In Q1 2024, the gross margin slightly improved to 47.26%, while the net margin increased to 31.50% [9]. - The company faced rising material costs, impacting the gross margins of its core products, particularly in the liver and cardiovascular medication segments [6]. Future Outlook - The company is expected to maintain strong growth in its core products and cosmetics, with a focus on brand marketing and expanding its product lines [7][9]. - The adjusted earnings per share (EPS) forecasts for 2024, 2025, and 2026 are 5.74 yuan, 6.77 yuan, and 7.84 yuan, respectively, with corresponding price-to-earnings (PE) ratios of 39.93, 33.90, and 29.25 [9].