DRTG(SH:600329) East Money Securities·2024-05-07 07:30Investment Rating - The report maintains a "Buy" rating for the company, with expected revenue and net profit growth for 2024-2026 [7]. Core Insights - The company's performance showed a slight decline in Q1 2024, with revenue of 2.086 billion yuan, down 3.19% year-on-year, and a net profit of 387 million yuan, down 3.36% year-on-year. The industrial segment saw revenue growth of 4.38%, while the commercial segment experienced a decline of 16.19% [2]. - The company has a strong core competitiveness in its product offerings, with 599 approved drug varieties covering 13 major health management areas. Key products like Su Xiao Jiu Xin Wan and Jing Wan Hong Ointment have extensive market coverage [2]. - The gross profit margin improved significantly, reaching 51.54% in Q1 2024, an increase of 2.76 percentage points year-on-year, while the net profit margin was 18.38%, down slightly by 0.08 percentage points [2]. Financial Data Summary - Total market capitalization is approximately 27.33 billion yuan, with a circulating market value of about 20.08 billion yuan [3]. - The company’s projected revenues for 2024, 2025, and 2026 are 8.998 billion yuan, 9.710 billion yuan, and 10.390 billion yuan, respectively, with corresponding net profits of 1.189 billion yuan, 1.271 billion yuan, and 1.356 billion yuan [8]. - The earnings per share (EPS) are forecasted to be 1.54 yuan, 1.65 yuan, and 1.76 yuan for the years 2024, 2025, and 2026, respectively, with price-to-earnings (P/E) ratios of 23, 21, and 20 [8].