Lingrui Pharma(SH:600285) Capital Securities·2024-05-09 11:00Investment Rating - The investment rating for the company is "Buy" [2][4]. Core Views - The company has shown steady growth in its patch products, with a significant increase in brand influence and sales performance. In 2023, the company achieved a revenue of 3.311 billion yuan, representing a year-on-year growth of 10.31%, and a net profit of 568 million yuan, up 22.09% [4]. - The core product, Tongluo Qutong Gao, has annual sales exceeding 1 billion yuan, and the "Two Tigers" series products maintain stable sales. The company is expected to continue benefiting from the aging population and the increasing number of orthopedic disease patients, indicating substantial long-term growth potential for its patch products [4]. - The company has optimized its expense ratio, with a sales expense ratio of 45.41% in 2023, down 2.68 percentage points from the previous year, reflecting improved marketing efficiency [4]. Financial Summary - In 2023, the company reported a revenue of 3.311 billion yuan, with a net profit of 568 million yuan. The revenue for Q1 2024 was 909 million yuan, showing a growth of 15.27% year-on-year, while the net profit was 190 million yuan, up 31.98% [4]. - The company forecasts revenues of 3.796 billion yuan, 4.297 billion yuan, and 4.856 billion yuan for 2024, 2025, and 2026, respectively, with corresponding net profits of 682 million yuan, 787 million yuan, and 907 million yuan [5]. - The projected P/E ratios for 2024, 2025, and 2026 are 20.9, 18.1, and 15.7, respectively, based on the closing price on May 8 [4][5].