ZZPZH(SH:600436) Huaan Securities·2024-05-09 14:00Investment Rating - The investment rating for the company is "Buy" (maintained) [1] Core Views - The company achieved a revenue of 10.058 billion yuan in 2023, representing a year-on-year increase of 15.69%. The net profit attributable to shareholders was 2.797 billion yuan, up 13.15% year-on-year [4][5] - In Q1 2024, the company reported a revenue of 3.171 billion yuan, a year-on-year increase of 20.58%, and a net profit of 975 million yuan, up 26.61% year-on-year [4][5] - The company is expected to see revenue growth of 14.2%, 13.0%, and 13.8% for the years 2024, 2025, and 2026, respectively, with net profits growing by 20.8% for 2024 [9] Financial Performance Summary - In 2023, the company's overall gross margin was 46.76%, an increase of 1.12 percentage points year-on-year. The expense ratio was 13.66%, up 2.37 percentage points [5] - The pharmaceutical manufacturing segment generated revenue of 4.802 billion yuan, with a year-on-year growth of 25.94% and a gross margin of 75.77% [6] - The liver disease medication segment had revenue of 4.463 billion yuan, growing 24.26% year-on-year, with a gross margin of 78.79% [6] - The cosmetics segment reported revenue of 707 million yuan, with a year-on-year growth of 11.42% and a gross margin of 62.18% [6] Product Development and Market Strategy - The company is focusing on enhancing its flagship products and expanding its cosmetics line, with significant sales from products like An Gong Niu Huang Wan and Pi Zai Huang tablets [7] - The company is actively conducting clinical research for 11 projects related to its major products, with 3 clinical studies completed [7] - The liver disease treatment segment saw a significant revenue increase of 27.84% in Q1 2024, reaching 1.505 billion yuan, attributed to price increases [8]