ZMC(600216) EBSCN·2024-04-30 03:06Investment Rating - The report maintains a "Buy" rating for Zhejiang Medicine (600216.SH) [11][16] Core Views - The vitamin market has shown signs of recovery, with significant performance improvement in Q1 2024. The company is focusing on R&D and the orderly progress of its pharmaceutical business [11][16] - The company's revenue for 2023 was 7.794 billion yuan, a decrease of 4% year-on-year, while the net profit attributable to shareholders was 430 million yuan, down 20% year-on-year. However, Q4 2023 saw a net profit of 130 million yuan, a 133% increase year-on-year [16] - In Q1 2024, the company achieved a revenue of 2.2 billion yuan, a 12% increase year-on-year, and a net profit of 110 million yuan, a 3% decrease year-on-year [16] Financial Performance Summary - The company's projected net profits for 2024, 2025, and 2026 are 484 million yuan (down 36%), 638 million yuan (down 29%), and 746 million yuan, respectively, with corresponding EPS of 0.50, 0.66, and 0.77 yuan [11][12] - Revenue is expected to grow from 8.623 billion yuan in 2024 to 10.599 billion yuan in 2026, with growth rates of 10.63%, 10.79%, and 10.95% [12] - The company's gross profit margin is projected to improve from 32.1% in 2024 to 35.5% in 2026 [12] R&D and Product Development - The company has increased its R&D investment, with R&D expenses reaching 860 million yuan in 2023, a 6% increase year-on-year [16] - New products are being developed, with several projects progressing through clinical trials and regulatory approvals, including various formulations and active pharmaceutical ingredients [16]