ZZPZH(SH:600436) Southwest Securities·2024-05-08 11:00Investment Rating - The report does not specify a clear investment rating for the company, but it suggests maintaining attention to the stock based on future performance expectations [2]. Core Views - The company reported a total revenue of 10.06 billion yuan in 2023, a year-on-year increase of 15.7%, and a net profit attributable to shareholders of 2.80 billion yuan, up 13.2% year-on-year [2]. - In Q1 2024, the company achieved a revenue of 3.171 billion yuan, representing a growth of 20.58%, and a net profit of 975 million yuan, an increase of 26.61% [2]. - The company plans to distribute a cash dividend of 23.2 yuan per 10 shares, totaling 1.4 billion yuan, which accounts for 50% of the net profit attributable to shareholders in 2023 [2]. Summary by Sections Revenue and Profitability - The pharmaceutical manufacturing segment generated revenue of 4.802 billion yuan in 2023, a growth of 25.94%, driven by significant sales increases in liver disease and cardiovascular drugs [2]. - The revenue from the pharmaceutical circulation segment was 4.205 billion yuan, a 3.6% increase, attributed to expanded sales channels and marketing efforts [2]. - The cosmetics business achieved revenue of 707 million yuan, up 11.42%, with notable sales from the Queen brand Pearl Cream exceeding 100 million yuan [2]. Cost and Margin Analysis - The gross margin for pharmaceutical manufacturing decreased by 2.93 percentage points due to rising costs of raw materials, particularly natural cow bile and other traditional Chinese medicine ingredients [2]. - The company’s R&D expenses were 232 million yuan in 2023, a 1.01% increase, with a focus on secondary development of its key products [2]. Future Earnings Forecast - The forecast for net profit attributable to shareholders for 2024-2026 is 3.38 billion yuan, 3.84 billion yuan, and 4.39 billion yuan, respectively, with corresponding P/E ratios of 43, 38, and 33 [2][3]. - The company expects to maintain a revenue growth rate of approximately 15% for its pharmaceutical manufacturing segment and 12% for its cosmetics business over the next few years [8]. Market Performance - The stock price has fluctuated between 188.51 yuan and 314.44 yuan over the past 52 weeks, with a current price of 242.98 yuan [6]. - The total market capitalization of the company is approximately 146.59 billion yuan [6]. Financial Metrics - The company’s return on equity (ROE) for 2023 was 20.48%, with projections of 20.91% for 2024 [3]. - The earnings per share (EPS) are expected to grow from 4.64 yuan in 2024 to 7.28 yuan by 2026 [3].