Lingrui Pharma(SH:600285) INDUSTRIAL SECURITIES·2024-05-06 01:32Investment Rating - The report initiates coverage with a "Buy" rating for the company [2][12]. Core Insights - The company has demonstrated robust growth in its core categories, with a focus on brand building and channel innovation. In 2023, the revenue from patches was CNY 2.047 billion, up 6.91% year-on-year, while tablet revenue surged by 34.66% to CNY 0.262 billion. Capsule revenue increased by 15.44% to CNY 0.712 billion, although ointment revenue declined by 7.93% to CNY 0.137 billion [3]. - The company is expected to achieve revenue of CNY 3.752 billion, CNY 4.244 billion, and CNY 4.791 billion for 2024-2026, reflecting year-on-year growth rates of 13.3%, 13.1%, and 12.9% respectively. The net profit attributable to shareholders is projected to be CNY 0.684 billion, CNY 0.813 billion, and CNY 0.948 billion, with growth rates of 20.3%, 18.9%, and 16.6% respectively [2][12]. Financial Performance Summary - In 2023, the company reported total revenue of CNY 3.311 billion, a year-on-year increase of 10.31%, and a net profit of CNY 0.568 billion, up 22.09%. The first quarter of 2024 saw revenue of CNY 0.909 billion, a 15.27% increase year-on-year, with net profit rising by 31.98% to CNY 0.190 billion [10][22]. - The company’s net profit margin for 2023 was 17.16%, an increase of 1.66 percentage points, driven by improved gross margins and efficiency in marketing and management [9][11]. Dividend Policy - The company plans to distribute a cash dividend of CNY 0.80 per share, totaling CNY 4.51 billion, which represents 79.41% of the net profit attributable to shareholders [16][20]. Market Data - As of April 30, 2024, the closing price was CNY 25.45, with a total share capital of 567.14 million shares and a net asset value of CNY 2.934 billion [8]. Future Outlook - The company aims to enhance shareholder returns through a structured dividend policy over the next three years, ensuring a stable and predictable return for investors [20][23].