Core Viewpoint - Zhaoli Pharmaceutical (300181) reported steady growth in its performance for 2024, with significant revenue and profit increases driven by its core products and effective pricing strategies [1][6]. Financial Performance - In 2024, the company achieved revenue of 2.58 billion yuan, a year-on-year increase of 32.81% - The net profit attributable to shareholders was 505 million yuan, up 31.79% - The non-recurring net profit was 503 million yuan, growing by 34.75% - Earnings per share (EPS) stood at 0.72 yuan [1]. Product Performance - The core product, the Wuling series, showed robust growth, with a revenue increase of 17.14% in 2024 - Wuling capsules saw sales volume and revenue growth of 22.62% and 15.96% respectively, while Lingze tablets experienced sales volume and revenue growth of 23.17% and 22.64% respectively [2][3]. Market Dynamics - The Wuling capsules, a unique product and a national Class I new drug, have maintained stable pricing despite a 21% price drop in 2022 during collective procurement - The product is well-positioned in the market, especially in public grassroots medical terminals, with ongoing research into its application for Alzheimer's disease prevention [3]. Strategic Developments - The Bailing series, including Bailing tablets and capsules, was selected in the national collective procurement, which is expected to enhance competitiveness in various regions - Short-term projections indicate a 15.25% increase in sales for Bailing tablets, although revenue may decrease by 7.23% due to a 3% price drop [4]. Business Growth Areas - The company has effectively leveraged its "one body, two wings" strategy, resulting in a 45.82% revenue increase in traditional Chinese medicine slices and a 145.34% increase in formula granules in 2024 [5]. Profit Forecast - The company is expected to maintain strong performance due to its competitive advantages, effective marketing strategies, and favorable government policies supporting traditional Chinese medicine - Revenue projections for 2024-2026 are 2.596 billion, 3.206 billion, and 3.811 billion yuan respectively, with net profits of 534 million, 713 million, and 912 million yuan [6][7].

Investment Rating - The report maintains a "Buy" rating for the company, with a target price based on the last closing price of 89.87 [1][6]. Core Insights - The company has experienced a significant turnaround in performance due to a recovering market, with a reported revenue of 1.529 billion yuan for 2024, representing a year-on-year increase of 37.37%, and a net profit of 104.2 million yuan, up 43.50% year-on-year [3][4]. - The company's capital market business is rapidly growing, which is expected to enhance its wealth management capabilities [6][9]. - The "one body, two wings" business model has been successfully implemented, integrating financial information services with securities and public fund services, which is anticipated to strengthen comprehensive wealth management [5][6]. Financial Performance Summary - For 2024, the company achieved a revenue of 1.529 billion yuan, with a growth rate of 37.37%, and a net profit of 104.2 million yuan, reflecting a growth rate of 43.50% [3][9]. - The forecast for 2025-2027 indicates revenues of 1.956 billion, 2.391 billion, and 2.827 billion yuan, respectively, with corresponding net profits of 224.26 million, 347.82 million, and 480.52 million yuan [6][9]. - The projected earnings per share (EPS) for 2025, 2026, and 2027 are 0.54, 0.84, and 1.16 yuan, respectively, with price-to-earnings (PE) ratios of 165.34, 106.61, and 77.16 [6][9].