YUNNAN BAIYAO(SZ:000538) Haitong Securities·2024-06-07 00:31Investment Rating - The report maintains an "Outperform" rating for the company, with an expected price-to-earnings (PE) ratio of 23-28x for 2024, corresponding to a fair value range of 60.26-73.36 yuan [9][11]. Core Insights - The company reported a revenue of 39.111 billion yuan in 2023, a year-on-year increase of 7.19%, and a net profit attributable to shareholders of 4.094 billion yuan, up 36.41% year-on-year [5][6]. - For Q1 2024, the company achieved a revenue of 10.774 billion yuan, a 2.49% increase year-on-year, and a net profit of 1.702 billion yuan, reflecting a 12.12% growth year-on-year [5][6]. - The pharmaceutical segment showed steady growth, with revenue reaching 6.481 billion yuan in 2023, a year-on-year increase of 8.16% [6]. - The health products segment also grew, achieving revenue of 6.422 billion yuan in 2023, a 6.50% increase year-on-year [6]. - The traditional Chinese medicine resources division reported a revenue of 1.71 billion yuan, a significant year-on-year growth of approximately 22% [6]. Financial Summary - The company’s revenue is projected to grow from 39.111 billion yuan in 2023 to 49.451 billion yuan by 2026, with a compound annual growth rate (CAGR) of approximately 6.7% [7][10]. - Net profit is expected to increase from 4.094 billion yuan in 2023 to 5.734 billion yuan in 2026, with growth rates of 36.4%, 14.3%, 11.4%, and 10.1% for the respective years [7][10]. - The gross margin is projected to improve slightly from 26.5% in 2023 to 26.9% by 2026 [10].