ZZPZH(SH:600436) Haitong Securities·2024-05-13 01:02Investment Rating - The investment rating for the company is "Outperform the Market" and is maintained [2][14] Core Views - The report highlights that the company's core product price increases have been completed, which is expected to enhance profitability. The company reported a revenue of 10.058 billion yuan in 2023, a year-on-year increase of 15.69%, and a net profit attributable to the parent company of 2.797 billion yuan, up 13.15% [6][8]. - For Q1 2024, the company achieved a revenue of 3.171 billion yuan, reflecting a growth of 20.58%, and a net profit of 975 million yuan, which is an increase of 26.61% [6][8]. Summary by Sections Financial Performance - In 2023, the company's revenue from liver disease medications reached 4.463 billion yuan, up 24.26%, with a gross margin of 78.79%, a decrease of 2.11 percentage points year-on-year. The company raised the price of its core product, Pian Zai Huang, in May 2023, which is expected to improve gross margins in the second half of 2023 [7][8]. - The cardiovascular medication segment reported a revenue of 266 million yuan, a significant increase of 60.57%, but with a gross margin decrease of 8.44 percentage points to 38.71% [7]. Strategic Initiatives - The company is focusing on enhancing its core product, strengthening major varieties, and expanding its cosmetics line. In 2023, sales of three major products exceeded 100 million yuan each, and the cosmetics segment also achieved over 100 million yuan in sales for its flagship product [7][8]. - The company is actively pursuing innovation, with 11 clinical research projects initiated for secondary development of major products and 3 new chemical drugs entering clinical research stages in 2023 [7][8]. Profit Forecast - The company forecasts net profits attributable to the parent company for 2024, 2025, and 2026 to be 3.308 billion yuan, 3.589 billion yuan, and 4.046 billion yuan, representing year-on-year growth rates of 18.3%, 8.5%, and 12.7% respectively. The core product, Pian Zai Huang, is expected to maintain strong demand, and the company is assigned a price-to-earnings ratio of 35-45 times for 2024, corresponding to a reasonable value range of 191.93 to 246.76 yuan [6][8].