Jiangsu wuzhong(SH:600200) Minsheng Securities·2024-04-26 04:30Investment Rating - The report maintains a "Cautious Recommendation" rating for Jiangsu Wuzhong (600200.SH) [3] Core Views - Jiangsu Wuzhong's pharmaceutical business shows steady growth, with a focus on the promotion progress of AestheFill [1][2] - The company achieved a revenue of 2.24 billion yuan in 2023, a year-on-year increase of 10.55%, while the net profit attributable to shareholders was -72 million yuan [2] - The medical beauty sector is expected to grow significantly, with AestheFill's market entry being a key focus [2] Financial Performance Summary - 2023 Financials: - Revenue: 2.24 billion yuan, up 10.55% year-on-year - Net profit attributable to shareholders: -72 million yuan - Non-recurring net profit: -99 million yuan - Q1 2024 Financials: - Revenue: 703 million yuan, up 14.97% year-on-year - Net profit attributable to shareholders: 5 million yuan, down 82.03% year-on-year - Non-recurring net profit: -2 million yuan, down 132.62% year-on-year [2] Business Segment Performance - Pharmaceutical Business: - Revenue: 1.84 billion yuan, up 29.46% year-on-year - Gross margin: 27.78%, down 10.76 percentage points year-on-year - Trade Business: - Revenue: 377 million yuan, down 35.64% year-on-year - Gross margin: 5.56%, up 1.16 percentage points year-on-year - Medical Aesthetics: - Revenue: 8 million yuan, up 2696.72% year-on-year - Gross margin: 49.88%, up 1.72 percentage points year-on-year [2] AestheFill Product Insights - AestheFill, a PDLLA-based facial filler, has been approved for sale and is expected to perform well in the market due to its unique properties [2] - The product has a significant market share in Taiwan, ranking first with nearly 30% in the medical beauty regenerative injection market [2] - The company plans to adopt a direct sales model focusing on first-tier and new first-tier cities in China [2] Future Earnings Forecast - Expected revenue for 2024-2026: - 2024: 2.81 billion yuan, up 25.6% - 2025: 3.34 billion yuan, up 18.8% - 2026: 3.88 billion yuan, up 16.1% - Expected net profit for 2024-2026: - 2024: 137 million yuan - 2025: 253 million yuan - 2026: 386 million yuan - Corresponding PE ratios for 2024-2026 are 54, 29, and 19 respectively [2][6]